The CEO of a major digital asset platform has dismissed concerns that stablecoins are causing a significant flight of deposits from traditional banks. In a recent interview, the executive argued that the idea is 'mathematically not possible,' citing data that shows stablecoin adoption remains relatively small compared to the overall banking sector.
The discussion comes amid growing scrutiny of stablecoins and their potential impact on financial stability. Some regulators and analysts have warned that the rapid growth of stablecoins could erode bank deposits, particularly if more consumers and businesses shift their funds to these digital assets.
The CEO emphasized that while stablecoins have seen increased usage, their total market capitalization is still a fraction of the global banking deposits. This discrepancy, according to the executive, makes it unlikely that stablecoins are currently a major factor in bank deposit outflows.
The remarks were made during a video interview with CoinDesk, a leading cryptocurrency media outlet. The platform is part of Bullish, a global digital asset company listed on the NYSE under the ticker BLSH.