Politicians are worried that stablecoins will be used at Amazon, Whole Foods, and on Facebook and X instead of sitting in bank accounts.

Politicians are worried that stablecoins will be used at Amazon, Whole Foods, and on Facebook and X instead of sitting in bank accounts. https://time.com/7274507/stablecoin-legislation-genius-act-musk/

It’s a fair worry actually. If banks can’t make loans then the economy doesn’t grow. Simple as that.

New lending protocols and banks will fight to put stablecoins to work. The system just moves onchain. 

Also, the concern makes it sound like user funds would be sitting in an Amazon or Whole Foods bank. In reality, they’re more likely to sit in user-controlled wallets like a Warplet.

Be specific.    
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If it is hypothetically an Amazon stablecoin, similar to how gift cards work today, I would bet Amazon will make it hard to move those funds out of its ecosystem

New lending protocols and banks will fight to put stablecoins to work. The system just moves onchain. 

Also, the concern makes it sound like user funds would be sitting in an Amazon or Whole Foods bank. In reality, they’re more likely to sit in user-controlled wallets like a Warplet.

https://a16zcrypto.com/posts/article/understanding-stablecoins-banking-history/