Bloomberg: "Stablecoins Threaten Small Banks… Possibility of Deposit Outflows ↑"

There is analysis suggesting that stablecoins have the potential to emerge as a real threat to small banks.

Bloomberg reported on the 29th (local time) that "banks are facing the possibility of competition with the cryptocurrency industry as the Stablecoin Act passes the U.S. Senate." The report went on, "Banks are considering the risk of deposit outflows," adding, "This is a concern that could have the greatest impact on small banks nationwide."

Accordingly, U.S. banks have reportedly been actively lobbying to ban income-generating stablecoins. Wade Peery, Chief Innovation Officer (CIO) of FirstBank, a Tennessee-based bank in Nashville, told Bloomberg, "If it becomes possible to replace U.S. dollars within the banking system with tokenized assets and move the funds outside the banking system, the financial system will face a significant turning point."