Coinbase says stablecoins not draining bank deposits, calls it a ‘myth’

Coinbase rejected claims that stablecoins drain US bank deposits, arguing most activity happens overseas and boosts the US dollar’s global strength.

Coinbase pushed back against claims that stablecoins threaten the US banking system, calling the idea of “deposit erosion” a myth.

In a Tuesday blog post, the crypto exchange argued that fears over stablecoins draining bank deposits are unfounded. Coinbase claimed that “recent analysis” shows there is no meaningful link between stablecoin adoption and deposit outflows at community banks.

“Stablecoins don’t threaten lending — they offer a competitive alternative to banks’ $187 billion annual swipe-fee windfall,” the exchange wrote, adding that stablecoins are not savings accounts but payment tools. “Someone buying stablecoins to pay an overseas supplier isn’t reallocating their savings — they’re choosing a faster, cheaper payment method,” it added.

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