The big banks are freaking out. Why? Because yield-bearing stablecoins are coming for their lunch.
According to Austin Campbell, a sharp NYU professor and crypto consultant, the banking lobby is straight-up panicking over these new coins that pay interest.
Have you tried not doing fractional reserve banking?
Campbell dropped this bombshell on May 21 with a social media post titled “The Empire Lobbies Back.” He didn’t hold back.
The banks want to keep their stranglehold on your money, making fat profits while giving you peanuts in return.
And now, these stablecoins that actually pay interest? They’re threatening that cozy little setup. Oh no.
Banks run on fractional reserve banking. They keep just a slice of your deposits handy and lend out the rest, raking in huge profits.
You get next to nothing in interest, if you’re lucky. Deal of the century, just not for us, average citizens.
Campbell says the banks are begging lawmakers, especially Democrats, to protect their cartel by blocking stablecoins from paying any kind of interest or rewards.
He called it naked pandering and warned politicians not to screw over their voters by supporting blanket bans on these crypto innovations.
Competition
Now, Campbell isn’t just shouting into the void, but he’s been pushing for smart stablecoin laws in the U.S. for a while.
Back in 2023, he warned Congress that if the government drags its feet, stablecoin issuers will pack their bags and move overseas. And who can blame them?
Why the fuss now? Because yield-bearing stablecoins are on the rise. Remember Figure Markets?
In February, the SEC gave the green light to their first yield-bearing stablecoin security, YLDS, offering a juicy 3.85% return. That’s a slap in the face to banks handing out pennies.
And they’re not alone. Tether’s co-founder Reeve Collins is rolling out the Pi Protocol, letting investors mint USP stablecoins in exchange for an interest-paying token called USI.
Fight?
Look, aside from Bitcoin, stablecoins might be the biggest blockchain game-changer yet. Coinbase Canada’s CEO Lucas Matheson shared that global stablecoin volumes are nearly three times those of Visa.
So yeah, the banks are sweating bullets. They want to keep you locked in their old-school system, but the future’s knocking loud, with interest-paying stablecoins.
The question is, will the powers that be let the empire crumble, or will they fight tooth and nail to keep their grip? I think you can guess.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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