Stablecoins are forcing banks to offer yields on deposits to stay competitive, says Stripe CEO Patrick Collison. The average interest rate for US savings accounts is 0.40%, and in the EU, it’s 0.25%. The rise of yield-bearing stablecoins is changing the financial landscape, with Collison pushing for fairer returns for depositors.

The stablecoin market has grown steadily since 2023, especially after the passage of the GENIUS stablecoin bill in the US. While the bill regulated the industry, it also banned yield-sharing. This growth, combined with the ban on yield-sharing, has raised concerns in the banking sector.

Banks and lawmakers are wary of stablecoins offering interest, fearing it could weaken the banking system. Senator Kirsten Gillibrand expressed concerns about stablecoins eroding banks’ market share. However, industry experts believe stablecoins are the future of payments, predicting they will eventually replace fiat currency.

Crypto industry executives foresee a future where all currencies are stablecoins, including fiat. Reeve Collins, co-founder of Tether, believes that by 2030, all currencies will be stablecoins under different names like dollars or euros. The rise of stablecoins is seen as a natural evolution that could disrupt traditional banking systems.

Read more at Cointelegraph: Stablecoin Yield Means Banks Must Now offer Customers Real Interest