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BTCC / BTCC Square / Global Cryptocurrency /
Fed Council Warns Stablecoins May Threaten Bank Deposits and Credit Systems

Fed Council Warns Stablecoins May Threaten Bank Deposits and Credit Systems

Author:
Global Cryptocurrency
Published:
2025-05-13 20:24:02
16
2

Members of the Federal Reserve’s Community Depository Institutions Advisory Council (CDIAC) have flagged stablecoins as a potential risk to traditional banking systems. The April 10 meeting minutes reveal concerns that nonbank-issued stablecoins could accelerate deposit outflows, mirroring the disruptive shift seen with money market mutual funds decades ago.

Council members drew parallels between today’s stablecoin landscape and the late 20th century financial upheaval, warning that digital assets may similarly erode banks’ deposit bases. The discussion highlighted pending stablecoin legislation as a critical regulatory frontier that could shape credit availability for local communities.

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