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💰 Stablecoin Interest Payments Could Shake Up Banks, Warns Citi Exec

🚨 Big Warning for Banks!

Citi’s finance head, Ronit Ghose, says if stablecoins start paying interest, it could pull huge amounts of money out of banks — just like what happened in the 1980s with money market funds 📉🏦.

📊 Back then:

Money market funds grew from $4B (1975) ➡️ $235B (1982) 😲

Banks lost $32B in deposits between 1981–82 because people chased higher returns 💵➡️💸

👀 Experts like Sean Viergutz (PwC) agree:

People may shift to high-yield stablecoins 🪙

Banks may need to raise deposit rates or borrow more 🏦💸

Result? Credit could get more expensive for families & businesses 💳📈

⚖️ Current Rules

The GENIUS Act bans stablecoin issuers from paying interest ❌

BUT crypto exchanges & related businesses aren’t restricted 🤔

Banks say this is a loophole ⚠️ and could cause $6.6 trillion in outflows 😱

📝 U.S. banking groups → regulators:

“This loophole could hurt American families and disrupt credit flow!” 😡

💡 Crypto Industry Reaction

Crypto companies: “Don’t kill innovation! 🚀 People deserve choice.”

They argue banks just want to protect themselves 🤷‍♂️

🇺🇸 Government Stance

Treasury Secretary Scott Bessent ✅ supports stablecoins

Says they’ll help keep the U.S. dollar 💵 #1 reserve currency worldwide 🌍

Backed by President Trump’s plan to protect the dollar’s global dominance 🦅

🔥 Reactions

😲 Investors: “Higher interest on stablecoins? Count me in!”

😡 Banks: “This could wreck our funding model!”

🚀 Crypto fans: “This is the future of money, let it grow!”

🇺🇸 Government: “Stablecoins will help us keep dollar dominance!”