Coinbase published a blog post asserting that fears regarding the threat stablecoins pose to the banking system are unfounded. The exchange rebutted claims of 'deposit erosion'.
Stablecoins and Bank Deposits
Coinbase argues that recent analysis shows no meaningful link between stablecoin adoption and deposit outflows at community banks. 'Stablecoins don’t threaten lending—they offer a competitive alternative to banks’ $187 billion annual swipe-fee windfall,' the company stated.
Global Stablecoin Activity
According to Coinbase, most stablecoin activity occurs internationally, especially in regions with weak financial infrastructures. In 2024, over $1 trillion of the $2 trillion in stablecoin transactions occurred outside the US, reinforcing the dollar's dominance.
Competition Among Banks
Bitwise’s investment chief, Matt Hougan, commented on the situation, stating that banks need to improve their offerings, particularly interest rates for depositors. He emphasized that rather than complaining about stablecoins, banks should provide more favorable terms for customers.
Coinbase challenged prevalent concerns about the impact of stablecoins on the banking system, highlighting that these digital assets have their advantages and can coexist with traditional banks.
