Banks vs. Crypto: It’s About the Money! 💰

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According to Austin Campbell, a New York University professor and founder of Zero Knowledge Consulting (which, let’s be honest, sounds like something straight out of a sci-fi novel), America’s powerful banking lobby is, and I quote, “panicking.” Yes, panicking. Apparently, the mere potential of stablecoins to disrupt their traditional business model has sent shivers down their collective spines. Especially those yield-bearing stablecoins. You know, the ones that dare to offer people interest. The audacity! 🤯

In a social media post that begins with, “The Empire Lobbies Back,” (because why not make a Star Wars reference when talking about finance?), Campbell claimed that the banking industry is particularly alarmed by the potential for stablecoins to offer interest or rewards to holders. It’s almost as if they don’t want competition or something. 🤔

In a message aimed at Democratic lawmakers, Campbell wrote that “banks want you to protect their cartel so they can keep screwing your voters.” Charming. One can almost hear the violins playing a dramatic rendition of “Poor, misunderstood bankers.”🎻

He went on to explain how fractional reserve banking enables banks to maximize profits while offering depositors minimal interest. Which is, of course, entirely coincidental and definitely not by design. 😇

The banking lobby says that if stablecoins pay interest or any other type of monetary reward, banks will be “harmed,” Campbell added. Because apparently, banks are delicate little flowers that can’t handle a bit of competition. 🌸

A worried banker, probably.

“This is naked pandering for cartel protection,” he said, while urging the opposition party to avoid “screwing” its voters with supporting any type of blanket ban on stablecoin interest payments. Because nothing says democracy like protecting a cartel. 🤡

Campbell has long advocated for sensible stablecoin legislation in the United States, warning a Congressional subcommittee in April 2023 that failing to enact such laws would push issuers overseas. Because, you know, geography. It’s a thing. 🌍

The Rise of Yield-Bearing Stablecoins (Or, How I Learned to Stop Worrying and Love the Interest)

Campbell’s scathing assessment of the traditional banking industry comes amid a wave of stablecoin issuers launching yield-bearing tokens. It’s almost as if the free market is… functioning? 😲

As reported by CryptoMoon (which, let’s face it, sounds more exciting than most financial news outlets), the US Securities and Exchange Commission (SEC) in February approved the first yield-bearing stablecoin security by Figure Markets. At the time of its launch, the new YLDS token offered a 3.85% yield. Which, in the grand scheme of things, is still less than what your average couch cushion offers. But hey, it’s a start! 🛋️

A pile of stablecoins, probably earning more than your savings account.

Figure Markets is by no means the only player going down the yield-bearing stablecoin route. Because, apparently, people like earning money. Who knew? 🤔

In February, Tether co-founder Reeve Collins announced that his Pi Protocol will allow investors to mint the USP stablecoin in exchange for USI, an interest-paying equivalent. It’s like a Russian nesting doll of financial instruments. Except instead of dolls, it’s money. And instead of Russia, it’s… well, the internet. 🌐

Spark Protocol’s USDS also offers holders interest payments generated through decentralized lending and tokenized Treasurys. Because nothing says “cutting-edge finance” like tokenized Treasurys. 🏦

Some sort of futuristic financial diagram. Probably.

“It’s unacceptable to not be receiving at least the risk-free rate for holding stablecoins,” Sam MacPherson, CEO of Spark Protocol developer Phoenix Labs, told Bloomberg. Because, let’s be honest, who actually likes losing money? 🤷‍♂️

Aside from Bitcoin (BTC), stablecoins have arguably become the most impactful use case for blockchain technology, with Coinbase Canada CEO Lucas Matheson telling CryptoMoon that global stablecoin volumes are nearly three times those of credit card giant Visa. So, next time you swipe your Visa, just remember: somewhere, a stablecoin is laughing at you. 😂

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2025-05-21 23:06