The post Banks Are in Trouble – Stripe CEO Says Stablecoins Will Make Them Pay Up appeared on BitcoinEthereumNews.com. Fintech The world’s biggest payment companies are starting to acknowledge what crypto builders have been saying for years: stablecoins might do to banks what email did to the post office. Patrick Collison, CEO of Stripe, believes the evolution of blockchain-based digital dollars will eventually leave traditional banks with no choice but to pay meaningful yields on deposits. “Cheap deposits may have worked for decades,” he hinted in a post responding to venture capitalist Nic Carter, “but the era of one-sided consumer relationships is ending.” The Stablecoin Revolution Banks Didn’t See Coming Over the past two years, stablecoins have transformed from a crypto niche into a global financial instrument. Their market capitalization has soared since 2023, thanks in part to the GENIUS Act – the U.S. law that gave stablecoin issuers a clear regulatory pathway. Yet, the same legislation also banned the payment of interest on these tokens, effectively protecting banks from immediate competition. That protection, however, may be temporary. As digital dollars circulate freely across decentralized and institutional platforms, stablecoins are beginning to expose the structural inefficiencies of the banking sector. In the U.S., the average savings rate sits at 0.40%, and in the EU, it’s just 0.25% – a sharp contrast to the returns available across decentralized finance. Collison believes consumers won’t tolerate that gap forever. “Depositors deserve to earn something closer to market returns,” he said, warning that financial institutions will eventually have to adapt or risk losing trust. The Battle Over Yield-Bearing Tokens Traditional banks aren’t taking this shift lightly. Lobbyists have already moved to restrict stablecoin issuers from offering interest-bearing versions, fearing that customers would move their money away from legacy systems entirely. During congressional hearings earlier this year, Senator Kirsten Gillibrand echoed those concerns, asking, “If stablecoins start paying interest, why would anyone keep money… The post Banks Are in Trouble – Stripe CEO Says Stablecoins Will Make Them Pay Up appeared on BitcoinEthereumNews.com. Fintech The world’s biggest payment companies are starting to acknowledge what crypto builders have been saying for years: stablecoins might do to banks what email did to the post office. Patrick Collison, CEO of Stripe, believes the evolution of blockchain-based digital dollars will eventually leave traditional banks with no choice but to pay meaningful yields on deposits. “Cheap deposits may have worked for decades,” he hinted in a post responding to venture capitalist Nic Carter, “but the era of one-sided consumer relationships is ending.” The Stablecoin Revolution Banks Didn’t See Coming Over the past two years, stablecoins have transformed from a crypto niche into a global financial instrument. Their market capitalization has soared since 2023, thanks in part to the GENIUS Act – the U.S. law that gave stablecoin issuers a clear regulatory pathway. Yet, the same legislation also banned the payment of interest on these tokens, effectively protecting banks from immediate competition. That protection, however, may be temporary. As digital dollars circulate freely across decentralized and institutional platforms, stablecoins are beginning to expose the structural inefficiencies of the banking sector. In the U.S., the average savings rate sits at 0.40%, and in the EU, it’s just 0.25% – a sharp contrast to the returns available across decentralized finance. Collison believes consumers won’t tolerate that gap forever. “Depositors deserve to earn something closer to market returns,” he said, warning that financial institutions will eventually have to adapt or risk losing trust. The Battle Over Yield-Bearing Tokens Traditional banks aren’t taking this shift lightly. Lobbyists have already moved to restrict stablecoin issuers from offering interest-bearing versions, fearing that customers would move their money away from legacy systems entirely. During congressional hearings earlier this year, Senator Kirsten Gillibrand echoed those concerns, asking, “If stablecoins start paying interest, why would anyone keep money…