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Stablecoin Yields Pose Threat to Traditional Bank Deposits, Citi Analysts Warn
Stablecoin Yields Pose Threat to Traditional Bank Deposits, Citi Analysts Warn
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BTCCSquare news:
Citi's Future of Finance head Ronit Ghose sounds the alarm on stablecoins disrupting banking liquidity. The appeal of yield-bearing digital currencies mirrors the 1980s money market fund boom that reshaped financial landscapes.
U.S. banking groups estimate $6.6 trillion in deposits could migrate to stablecoin products. The crypto industry remains defiant against regulatory attempts to cap yields, setting the stage for a potential financial system transformation.
Historical parallels loom large. Money market funds exploded from $4 billion to $235 billion between 1975-1982 as yield-seeking consumers abandoned traditional accounts. Today's stablecoins threaten to accelerate this phenomenon through blockchain efficiency.
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