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The American Bankers Association is concerned that stablecoin yields would lead to mass deposit outflows from smaller community banks.<\/p>\n
The American Bankers Association (ABA) has criticized a White House report that claimed banning stablecoin yields would only have a negligible impact on banks, arguing that the conclusion was reached by asking the \u201cwrong question.\u201d<\/p>\n
The White House\u2019s Council of Economic Advisers claimed in a research paper on Wednesday, on the \u201cEffects of Stablecoin Yield Prohibition on Bank Lending,\u201d that under a baseline scenario, banning stablecoin yield may only increase bank lending by $2.1 billion, representing a marginal net increase of about 0.02%.<\/p>\n
ABA chief economist Sayee Srinivasan and vice president for banking and economic research Yikai Wang said<\/a> in a statement on Monday that the \u201clive policy concern\u201d is not whether prohibiting yield on stablecoins would impact bank lending but whether allowing yield on stablecoins would encourage deposit outflows, particularly from community banks.<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n