White House refutes banks' fears about stablecoins
The White House Council of Economic Advisers stated that banks’ fears about deposit outflows to stablecoins are greatly exaggerated. According to the report, even in a negative scenario, the impact of stablecoins on lending will be limited, and banning yields on stablecoins could harm the economy more than help it.
Source Incrypted
It was also noted that most stablecoin reserves are already held within the banking system, reducing the potential threat to traditional financial institutions. Therefore, bank panic over competition from stablecoins appears unwarranted.
At the same time, experts emphasize that strict regulation limiting stablecoin profitability may have negative economic consequences, as it would reduce incentives for their use in the financial sector.
The White House Council of Economic Advisers is an advisory body to the US executive branch tasked with analyzing economic policy and providing recommendations to ensure economic stability and growth.
Thus, the official position of the White House aims to calm the market and highlight that digital currencies based on stablecoins do not pose a serious threat to the banking sector and financial stability.
Looking ahead, the regulatory debate on stablecoins is likely to continue, but it is important to understand that their existence does not threaten traditional banks at this time.
