Regulation· ★★★· neutral·

Austin Campbell: stablecoins move bank deposits rather than destroy them

  • —Campbell: creating or redeeming a stablecoin moves a deposit between owners, it does not vanish
  • —An individual bank can lose deposits, but the banking system as a whole does not
  • —Stablecoins resemble cash or money-market instruments more than leveraged bank deposits
  • —ABA and ICBA want limits on stablecoins that pay holders a yield
Why it matters: The argument shapes the debate over banning yield-bearing stablecoins: if deposits only shift, restrictions look more like bank protectionism than prudence.
Source: Crypto Briefing
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