Bank lobby is 'panicking' about yield-bearing stablecoins — NYU professor
The banking lobby in the U.S. is concerned about stablecoins disrupting traditional banking models, particularly yield-bearing stablecoins that offer interest to holders. Austin Campbell, a professor at NYU, highlighted this panic, stating that banks fear losing profits if stablecoins provide rewards. He criticized banks for seeking protection from lawmakers to maintain their profit margins while offering minimal interest to depositors. Campbell warned that without sensible stablecoin legislation, issuers may relocate overseas. The rise of yield-bearing stablecoins is notable, with the SEC approving the first such security in February 2023, offering a 3.85% yield. Other projects, like Pi Protocol and Spark Protocol, are also launching yield-bearing tokens. Stablecoins are becoming a significant application of blockchain technology, with their global volumes surpassing those of Visa.
