Coinbase Policy Chief Refutes Bank Claims of Stablecoin Deposit Threat

The chief policy officer at Coinbase, Faryar Shirzad, argues that stablecoins do not threaten the financial system, countering U.S. banks' claims which he describes as myths protecting their revenue streams.

Shirzad states there is no significant link between stablecoin adoption and a mass outflow of bank deposits.
Banks continue to hold trillions at the Federal Reserve, indicating deposits are not at risk.
The opposition from banks centers on the payments business, with stablecoins offering faster, cheaper transactions, threatening $187 billion in annual fees.
He compares this resistance to earlier objections against ATMs and online banking.
Stablecoins, valued at approximately $290 billion, are primarily payment tools, not savings products.
Banks are encouraged to adopt stablecoin technology for efficient transactions, potentially benefiting from reduced costs and enhanced services.

The U.K. is considering limits on "systemic" stablecoin holdings to prevent potential deposit outflows that could impact financial stability. Proposed caps include 10,000 pounds for individuals and 10 million pounds for businesses.