Thread by @faryarshirzad

The "stablecoins will destroy bank lending" narrative ignores reality. U.S. banks are sitting on trillions in reserves—they have plenty of liquidity. Meanwhile, most stablecoin demand comes from outside the U.S., expanding dollar dominance globally, not competing with your local bank. 1/3

Stablecoins are doing for payments what money market funds did for savings: forcing innovation through competition. Faster, cheaper, programmable transactions aren't a threat—they're overdue progress. Credit isn't vanishing, it's evolving and growing into private credit, fintech, and DeFi. 2/3

As we've shown in previous studies, community banks and stablecoin holders barely overlap—though the banks could improve their services with stablecoins. Treating stablecoins as a threat misreads the moment: they strengthen the dollar's global role and unlock competitive advantages that the U.S. shouldn't constrain. Read more here from the @coinbase Institute:
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