U.S. regional banks have expressed strong concern that stablecoins could erode bank deposits on a large scale, but JPMorgan did not agree with the crisis narrative.
CoinDesk reported on Jan. 12 that JPMorgan said multiple layers of money already exist, including central bank currency and tokenised funds. It said deposit tokens and stablecoins will be complementary tools with different uses.
The banking industry has long viewed stablecoins as competitors that pay interest and has repeatedly called for tougher regulation in related legislation. Some experts said this is a typical lobbying strategy repeated whenever a new competitor emerges, adding that the real risk is that existing banks fail to offer competitive products in the digital era.
The banking industry is again calling for the Genius Act's interest ban to be clearly extended to stablecoin partners and exchanges. It could also have a major impact on exchange-based yield products and crypto lending models.
Chi-gyu Hwang
delight@d-today.co.kr