Suche
Mein Konto
Citi manager warns: Interest on stablecoins could endanger bank deposits similar to the 1980s - banks are pushing to close the GENIUS Act loophole.
Stablecoins and their possible impact on bank deposits: A warning signal from Citi In the current discussion about the future of stable cryptocurrencies, particularly in relation to their use for interest payments, a high-ranking representative from Citigroup has warned of possible negative consequences for the banking landscape. The Citi executive emphasized that using stablecoins to pay interest...
Citi manager warns: Interest on stablecoins could endanger bank deposits similar to the 1980s - banks are pushing to close the GENIUS Act loophole.
Stablecoins and their potential impact on bank deposits: A warning signal from Citi
In the current discussion about the future of stable cryptocurrencies, particularly in relation to their use for interest payments, a high-ranking representative from Citigroup has warned of possible negative consequences for the banking landscape. The Citi executive emphasized that using stablecoins to pay interest on deposits could lead to an outflow of bank deposits - a phenomenon seen in the financial crisis of the 1980s.
The feared effects of this development could endanger the stability of the banking system. In particular, increased use of stablecoins, which often offer higher interest rates than traditional bank deposits, could lead to customers withdrawing their funds and investing them in digital currencies. This dynamic could put pressure on banks to raise their own interest rates in order to remain competitive, which in turn could weigh on their earnings situation.
To counteract these potential problems, banks are working to close legal loopholes in the so-called GENIUS Act. This draft law aims to promote the regulation of stablecoins and their integration into the existing financial system. Closing the gaps could help provide clarity and shape a balanced regulatory environment that ensures both innovation and stability.
Overall, the discussion about stablecoins shows that the financial markets are undergoing rapid change. Banks' responses to these new developments will determine how these technologies can be integrated in the future without endangering the stability of the financial system. It remains to be seen how the regulatory framework will develop and what measures will be taken to strengthen both consumer protection and the banking system.