BIS just dropped a paper saying banks could kill stablecoin demand overnight if they actually paid decent yields on deposits.
The play is obvious: people park money in $USDT/$USDC because banks give you nothing. Moment TradFi starts competing on rates, stablecoin TVL bleeds.
But here's the thing—banks won't. They're structurally slow, regulatory-captured, and terrified of margin compression. Meanwhile stablecoins are plugged into DeFi yields, cross-border rails, and 24/7 settlement.
BIS can write all the papers they want. The genie's out. Stablecoins aren't just about yield—they're about permissionless access and composability. Banks can't copy that even if they try.
The play is obvious: people park money in $USDT/$USDC because banks give you nothing. Moment TradFi starts competing on rates, stablecoin TVL bleeds.
But here's the thing—banks won't. They're structurally slow, regulatory-captured, and terrified of margin compression. Meanwhile stablecoins are plugged into DeFi yields, cross-border rails, and 24/7 settlement.
BIS can write all the papers they want. The genie's out. Stablecoins aren't just about yield—they're about permissionless access and composability. Banks can't copy that even if they try.