Coinbase: Stablecoins Strengthen USD No Bank Deposit Flight

Coinbase policy chief Faryar Shirzad refutes claims that stablecoins trigger mass U.S. bank deposit outflows, calling the notion of deposit flight a myth. He explains in a recent blog post that stablecoins serve primarily as payment tools for trading and cross-border payments, not as savings products. By enabling faster, cheaper international transfers, stablecoins compete with U.S. bank swipe fees of around $187 billion annually, without weakening domestic deposits. With a market capitalization near $290 billion, stablecoins lack the scale to cause the $6 trillion deposit erosion forecast by regulators. Shirzad notes that over half of last year’s $2 trillion in stablecoin transaction volume occurred outside the U.S., in regions such as Asia, Latin America and Africa, strengthening the dollar’s global role. He also cites the GENIUS Act’s effect: a shift to a positive correlation between bank stocks and crypto firms, suggesting that well-defined rules benefit both sectors.