Citi executive warns stablecoin yields could drain bank deposits: report

Sean Viergutz from PwC mentioned that a shift towards higher-yielding stablecoins could raise banking costs, impacting credit availability for households. The US banking sector is voicing opposition to interest payments on stablecoins, fearing it could disrupt credit flows.

The GENIUS Act may restrict stablecoin issuers from offering yields but doesn’t affect crypto exchanges. Banking groups are urging regulators to close loopholes that could allow interest payments, potentially risking 6.6 trillion USD in bank deposits.

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