The American Bankers Association warns of stablecoin interest payments or accelerated deposit outflows

On April 13th, the American Bankers Association (ABA) warned in an article in the Journal of Banking that allowing stablecoins to generate revenue could accelerate the transfer of household and corporate funds from bank deposits to stablecoins, particularly with significant impacts on community banks. ABA analysis shows that the loss of deposits may lead to a decrease in community bank loans and force them to replace funds with high cost financing, damaging the field of dependent bank loans. ABA believes that prohibiting the issuance of stablecoin profits is a prudent protective measure that can reduce economic risks.