Moody's: Stablecoins pose limited short-term threat to banks

The risk of disruption to the banking sector from stablecoins is currently limited, according to Abhi Srivastava, a vice president at Moody's Investors Service, Cointelegraph reported. He explained that despite the stablecoin market's size exceeding $300 billion, it is unlikely to replace bank deposits in the short term due to U.S. prohibitions on interest payments and the competitiveness of existing payment infrastructure. However, Srivastava noted that in the long term, the growing adoption of stablecoins and real-world assets (RWA) could potentially weaken banks' deposit bases and reduce their lending capacity. Meanwhile, a comprehensive crypto market regulatory framework known as the CLARITY Act remains stalled in Congress.