Banking Sector: "Block Interest Payments"...Vested Interests in Crisis Amid Stablecoin Spread

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As traditional financial institutions move to restrict interest payments on stablecoins, conflicts surrounding financial innovation are intensifying. However, market observers suggest that such regulatory attempts could accelerate new trends rather than slow down the pace of change.

According to Forbes on April 21 (local time), the banking sector believes that stablecoins threaten the existing deposit-based revenue model and is expanding lobbying efforts to demand stronger regulations. Christian Catalini, a researcher at the Massachusetts Institute of Technology (MIT), criticized these actions by likening them to past efforts by the dairy industry to impose artificial restrictions to prevent the spread of margarine. He pointed out that attempts to limit competition could, in fact, lead to market distortion.

The core revenue structure of banks involves securing deposits at low interest rates and then lending them out at higher rates to earn a profit margin. However, if stablecoins evolve into a structure that provides direct returns to users, this model will face a fundamental challenge. Consequently, some banking associations are moving to include provisions restricting stablecoin interest payments in the U.S. cryptocurrency market structure bill.

Experts note the possibility that artificial control through regulation could backfire. Just as past margarine regulations failed to suppress consumer choice, stablecoins could also spread by circumventing regulations. This could ultimately accelerate capital movement, bringing about the structural changes that the banking sector fears.

Currently, the stablecoin market is in a phase of expanding trust based on the transparency of collateral assets and regulatory compliance. The efficiency and accessibility offered by digital assets are rapidly exposing the limitations of the traditional financial system, and there is a clear movement for them to establish themselves as a new standard.

In the market, there is a growing call for changes in the financial system to occur through adaptation rather than regulation. Concerns are also raised that excessive restrictions could lead to innovative companies moving overseas and weaken financial competitiveness. The assessment is that the higher the barriers to protect vested interests, the stronger the market's impetus to overcome them will become.

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