@alfrsfsed
Stablecoin issuers offering interest-bearing products create direct competition with traditional banks. Users may prefer transparent, on-chain yields over low-yield savings accounts. If large-scale adoption occurs, banks risk deposit flight, eroding their role in credit intermediation. However, regulatory scrutiny is likely, as interest-bearing stablecoins blur the line with securities or banking products. Whether these models disrupt traditional banking depends on compliance, integration with DeFi, and user trust. The threat is real: stablecoins could evolve into parallel banking systems.
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