The Silent War Over Your Cash
The Hidden Battle
Big banks are engaged in a quiet fight to stop stablecoins from offering rewards. They don't want you to know they make billions from fees and interest. Here's the deal:
- Banks earn a lot from the money you keep in their accounts.
- They charge high fees for card payments.
- They don't want stablecoins to take a piece of that pie.
Why Banks Fear Stablecoins
Stablecoins could offer better deals, like rewards for using them. But banks say no. They argue that stablecoins could hurt their ability to lend money. However, studies show that stablecoins won't make a big dent in bank deposits. So, why the fuss?
It's all about keeping their profits safe.
The Billion-Dollar Profit Shield
- Banks make about $360 billion a year from fees and interest on reserves.
- They don't want stablecoins to offer similar or better returns.
- They want to keep that money for themselves.
The GENIUS Act, a new law, bans stablecoin issuers from paying interest. Banks want this rule to apply to everyone involved with stablecoins.
The Merchant Fee Battle
Stablecoins could save merchants billions in fees. But banks don't want that to happen. They want to keep charging high fees for card payments. Stablecoins could offer a cheaper way to pay, but banks are fighting to stop that.
The Fight for Control
The fight is about more than just money. It's about control. Banks want to:
- Keep control of the payment system.
- Prevent stablecoins from offering a better deal.
- Maintain their profits and power.
The Future of Money
The outcome of this fight will decide who gets to keep the profits from the payment system. Will it be the banks, or will stablecoins offer a better deal for users? The answer will shape the future of money.
