Cryptocurrency: Banks want to prohibit the yield of steiblcoins

Patch for protection. American banks rebelled against steiblcoins and decided to lobby Congress to ban the issuers of these cryptocurrencies offer their customers income . The reason is to see a decrease in bank deposits in favor of steiblcoins, which will jeopardize the credit system that depends on these deposits. But supporters of the steiblcoins believe that banks want to protect their annual circulation of $ 187 billion from transaction commissions. Opposition just started.

The key points of this article:

• American banks lobbied Congress on the prohibition of the yield of steiblcoins, fearing influence on the credit system.
• Stablcoin supporters condemned this step as a panickers, claiming that these cryptocurrencies enrich the financial system and not threaten it.

Banks want to ban the steiblcoin’s yield In an open letter sent last August to the Senate Bank Committee, more than 40 state banking associations joined the American Banker Association, calling for Congress to strengthen The ban on the payment of interest According to the steiblcoins contained in the law of Genius. This law signed in July 2025 is the first legal basis for steiblcoins in the United States and actually prohibits the issuers of these cryptocurrency pay interest to your customers.

But banks would like to go even further and also ban cryptocurrency exchanges, brokers and affiliate persons yield or rewards to their users. They fear that otherwise clients will remove their deposits from banks and place them in steiblins, which will reduce the pool of funds that banks use to provide loans.

“Banks feed the economy by turning deposits into loans. When deposits flow into steiblcoins in search of profit, the creation of loans suffers. “

American Banker Association on Steiblcoins – Source: Open Letter

Banks are dissatisfied with the competition imposed by the issuers of steiblcoins and want to strengthen regulation.

Coinbase condemns panicker rhetoric and calls it myth Faced with it by the onset of banks , Supporters steiblcoins condemn panicker and exaggerated statements . In their opinion, steiblcoins do not threaten the banking system, but on the contrary, enrich it by offering a new, fast, effective and inexpensive payment solution .

They say that steiblcoins They are used mainly for cross -border payments, decentralized finances as a means of maintaining value and as an internal payment system. Thus, they help modernize the financial system and strengthen the role of the dollar in the world.

In a recent publication Coinbase She even remembered “Myth of deposit erosion” and accused the banks of the desire to protect their rate of profit from Competition . Coinbase Policy Head Farryer Shirzad stated that if banks There were not enough deposits, they would offer higher interest rates to raise funds. However, this is not true. He added that banks would prefer to place their reserves in the federal reserve system than to issue more loans.

“It’s not about the economy; It is about the control of the narrative and protecting the profit standards from competition. “

Farryer Shirzad, Head of Coinbase Policy Department – Source: Coinbase

Because steiblcoins continue to gain popularity and be implemented, traditional banks try to restrain them by lobbying Congress. But with increasing demand for consumers and businesses for faster, cheaper and more affordable payment solutions, it seems difficult to stop the growth of these unique cryptocurrencies. So the question is how banks adapt to this new reality and how They will coexist with these new digital finance players.

Source: Journalducoin.com