Banks aren't fighting stablecoins because they're dangerous. They're fighting them because stablecoins expose a part of the banking system that only works if you can't opt out. Now, on the surface, this gets framed as regulation or safety, maybe even politics. But that's not what's really happening now. Video by Mark Moss.
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00:00 The Real Reason Banks Fight Stablecoins
04:07 Why The Banking Model Is Breaking
06:31 How Banks Create Duration Mismatch
08:29 The Hidden Assumption About Your Deposits
12:26 The Fight For New Liquidity Rails
16:30 How Global Liquidity Flows Will Change
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Key Insights
The core reason traditional banks fight against stablecoins is the threat of massive deposit flight, which undermines their foundational business model of using low-cost customer deposits to generate profit. Stablecoins allow users to hold digital, dollar-backed assets that often offer superior, consistent yields (3-5%+) compared to traditional, low-interest, or zero-interest checking and savings accounts.
The Underlying Shift
The rise of stablecoins signifies a, shift from an "account-based, multi-ledger" system to a "wallet-based, single-ledger" future. While banks currently fight this shift, some are beginning to transition from total opposition to adopting their own, regulated stablecoins or "tokenized deposits" to compete in this new landscape.
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