Us Banks Lobby to Block Stablecoin Interest Over Fears of Deposit Flight

US banks are lobbying to block stablecoins from offering interest, fearing it could trigger a deposit flight, but commenters are skeptical about the legitimacy of stablecoins, pointing out that some may not actually hold the assets they claim to have, like Tether. Others argue that if stablecoins are meant to be used as currency, banks should be able to compete by offering similar interest rates. The discussion reveals a mix of concerns about the stability of stablecoins and the motivations behind the banks' lobbying efforts, with some commenters questioning the very definition of a currency and whether crypto meets it. As the debate unfolds, it becomes clear that the issue is complex, with multiple factors at play, making it a timely and relevant discussion.

Snapshot generated from the HN discussion