Coinbase has rejected claims that stablecoins could hurt U.S. banks. Some people worry that stablecoins will take money away from bank deposits, but Coinbase says this is a “myth.”
In a blog post on Tuesday, the company explained that studies show no clear link between people using stablecoins and money leaving community banks.
“Stablecoins don’t reduce lending. They actually compete with banks’ $187 billion a year in swipe fees.” Coinbase
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The company also stressed that stablecoins are not savings accounts, but tools for payments. For example, if someone buys stablecoins to pay a supplier abroad, it’s not because they’re moving money out of a savings account, it’s because they want a faster and cheaper way to send money.
Coinbase also criticized a recent U.S. Treasury Borrowing Advisory Committee report, which suggested stablecoins could cause $6 trillion in bank deposit losses. The exchange pointed out that the report only predicts a $2 trillion stablecoin market by 2028. “The math doesn’t add up,” Coinbase argued.
Stablecoins Strengthen the Dollar, Not Weaken Banks
In a new paper, Coinbase said most stablecoin use happens outside the U.S., especially in places with weaker financial systems. Citing the International Monetary Fund (IMF), the paper noted that more than $1 trillion of the $2 trillion in stablecoin transactions in 2024 took place abroad, mainly in Asia, Latin America, and Africa.
Because most stablecoins are tied to the U.S. dollar, their use overseas makes the dollar stronger worldwide. Coinbase argued this means stablecoins don’t reduce U.S. bank deposits but instead spread the dollar’s influence globally, without hurting credit at home.
The company also pointed out that after the GENIUS Act, a U.S. law for stablecoins, was passed, both bank stocks and crypto companies like Coinbase and Circle moved up together. This, it said, shows that stablecoins and banks can succeed side by side.
