Are banks' concerns about stablecoins a false proposition? Industry insiders debunk five "myths"

【Crypto World】There is a common topic in the US financial industry—stablecoins will threaten traditional banking. Recently, a part-time professor at a university publicly stated that this concern is “baseless” and merely an excuse to protect vested interests.

His view is straightforward: the growth of stablecoins could actually increase bank deposits. Why? Because the majority of demand for stablecoins comes from overseas markets, not as a substitute for domestic deposits. The five misconceptions about banking hype—from run risks to shrinking loans—are all unsubstantiated.

The most interesting point in his argument is that stablecoins’ competition will only suppress bank profits and have limited impact on lending. If banks really want to compete, they can just raise interest rates—why rush to shout from the rooftops?

He finally highlighted the core issue—Congress should prioritize innovation and consumer rights when legislating, rather than opening backdoors for large banks with high profit margins. The contest between financial innovation and traditional finance is essentially a battle of interests.