Non Paywalled: https://archive.is/r0x0z
Strictly speaking, stablecoins don’t take funds out of the banking system. One way or another, these dollars will usually end up back in banks. What banks wind up with, though, could be something very different: the kinds of big, uninsured deposits that make some people nervous.
Who are these people? They should only realise what goes in comes out but it's fiat that will keep serving the system.
Ahhmm! It's not the system that's nervous.....
Under proposed guidelines of versions of the Genius Act, stablecoin issuers can hold reserves in bank accounts. They can also buy things such as U.S. Treasurys, which moves cash to the accounts of the sellers of those assets. They can even essentially lend cash to banks, as part of so-called repurchase agreement transactions, as money-market funds often do.
So banks are nervous scared to death!
Circle and Tether will replace banking???
I won't be much surprised and would enjoy if they did. But there's no chance that is gonna happen for Fiat will be fiat and stablecoins don't change anything. Fiat money will still be printed minted without any backing up or it will not stable the inflation as is the name .... Fiat is doomed....
paper money and stablecoins are same shit....
"money that is easy to produce is no money at all, and easy money does not make a society richer; on the contrary, it makes it poorer by placing all its hard‐earned wealth for sale in exchange for something easy to produce."
— Saifedean Ammous, The Bitcoin Standard: The Decentralized Alternative to Central Banking