Stablecoin Surge Threatens Bank Deposits as Tokenized Money Reshapes Liquidity
Global financial systems face tectonic shifts as stablecoins emerge as a viable alternative to traditional banking deposits. Governments and corporations are reevaluating tokenized money's role in capital allocation, with Japan leading the charge through experimental use cases like JPYC for bond purchases and stimulus distribution.
Banking models built on cheap deposits now confront existential pressure. Digital-asset yields are siphoning capital from traditional accounts, raising funding costs and constricting credit availability. This structural shift will intensify as stablecoin adoption expands, according to industry analysts.
The coming 'super cycle' of 100,000 new issuers threatens to accelerate this trend. While central banks retain control through conventional monetary tools like interest rate adjustments, the banking sector must adapt to dwindling deposit bases and heightened competition for liquidity.
