Stablecoins, primarily pegged to the value of the US dollar, are shaking the foundations of traditional banking, and not silently.
In recent years, the financial world has witnessed a profound transformation driven by stablecoins, cryptocurrencies that maintain their value pegged to traditional currencies like the dollar and the euro.
These blockchain-based digital currencies are changing the way traditional banking operates, emerging as a transformative and innovative force. However, while stablecoins have been praised for their efficiency and global accessibility, some analysts warn that their rapid rise could be eroding the stability of traditional banking, particularly in terms of liquidity.
Faced with this disruptive reality, experts and regulators are paying close attention to how stablecoins could redefine the rules of the banking game, while traditional financial institutions prepare to adapt or face a completely transformed landscape.
TRADE WITH STABLECOINS HEREThe rise of stablecoins and their impact on the financial system
The rapid growth of stablecoins has captured the attention of the entire financial sector. In just one year, their global capitalization has nearly doubled, currently exceeding $255.000 billion, consolidating their position as a decisive player in today's digital economy.
Its rise is mainly due to the ability of these digital currencies to offer a faster and more efficient alternative to traditional cash within crypto markets and in everyday transactions. Stablecoins promise stability of value by being pegged to fiat currencies like the US dollar, the euro, or the yen, making them less volatile compared to other cryptocurrencies.
However, due to their potential, stablecoins are a phenomenon that could trigger profound changes in the global financial system. Unlike traditional bank deposits, which are typically stable and backed by deposit insurance and strict regulations, stablecoins represent new types of digital deposits. When users convert their dollars or euros into stablecoins, these funds are managed by issuers who place them in bank reserves or financial instruments, changing the nature and circulation of money in the financial ecosystem. This substitution could affect the liquidity of traditional banks, as capital tends to be concentrated in systemic financial institutions, leaving smaller banks in a vulnerable position, according to experts.
Pressure from big tech companies and the role of regulation
Interest in stablecoins is not only coming from individual users or crypto platforms, but has also caught the attention of large technology companies and retailers. Companies like Stripe, Paypal, Google, Amazon, X (formerly Twitter), Meta, Apple, Microsoft, Uber and Walmart are actively exploring these digital currencies, considering their potential to revolutionize payments and the digital economy.
This foray by tech giants into the stablecoin business adds an additional layer of pressure on traditional banking, which is seeing how such a powerful sector could displace some of the control they have over payment systems and deposit collection.
Faced with this reality, the most important banks in the United States, including JPMorgan Chase, Bank of America y Citigroup, as well as other global ones such as Standard Chartered, are evaluating joint projects to operate and even launch their own stablecoins. The intention behind this initiative is to maintain their relevance in the digital payments space, prevent the erosion of their deposit base, and respond to growing competition from the crypto and technology industries. This move signals that even the most established financial institutions are recognizing the imminent influence of stablecoins and are preparing to adapt, innovate, or compete in this new ecosystem.
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At the same time, regulation plays a key role in this transformation. In the United States, GENIUS Act It has passed initial steps in the Senate and its possible approval is under debate. This legislation aims to create a regulatory framework that allows banks and non-bank entities to issue stablecoins, but it imposes clear limits for public sectors outside the financial system.
The intention of this regulatory proposal is to ensure that these digital currencies have a solid legal backing, minimizing risks to financial stability and preventing conduct that could jeopardize the traditional banking system.
ENTER CRYPTO WITH BIT2METhe challenges of liquidity and financial stability
One of the main risks associated with the growth and expansion of stablecoins, according to experts, is their potential impact on the liquidity of traditional banks.
Classic retail deposits are a stable source of funding for financial institutions, allowing banks to maintain healthy liquidity coverage ratios and manage short-term obligations with confidence. However, the unstoppable rise of stablecoins is creating palpable strain on the traditional banking system. These digital currencies are rapidly capturing the attention of users seeking faster, cheaper, and simpler transactions, possibly driving this user base away from traditional bank deposits.
Experts point out that this represents a real risk for financial institutions, as conventional retail deposits have for decades been the solid foundation that allows them to maintain healthy liquidity levels and meet their short-term commitments with ease.
Now, as more people and businesses turn to stablecoins to move their money, banks could see that stable source of funding erode. Fewer deposits would mean fewer resources for lending and greater pressure to seek funding in wholesale markets, which are often more expensive and volatile. Consequently, bank liquidity would be threatened, and with it, banks' ability to operate with the same confidence as before.
Faced with these challenges, regulators are called upon to design regulatory frameworks that allow them to take advantage of the benefits of stablecoins, such as speed and efficiency in payments, without sacrificing financial stability or consumer protection. The balance between innovation and security is a complex but crucial challenge for the future of the global banking system.
Building a new financial era
In a article Published in April of this year, the World Economic Forum recognizes that stablecoins have become “a popular medium of exchange compared to other cryptocurrencies”, which are reshaping the financial landscape by enabling millions of people to access international payments more quickly and affordably.
However, the expansion of stablecoins not only represents an opportunity but also a challenge for banking. Therefore, major banks have already begun to view these digital currencies as a reality that will transform the financial landscape. Adapting to this new era is imperative and will require not only technological innovation and new products, but also close collaboration with regulators to build an inclusive, secure, and efficient financial system.
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