Stablecoin Wars and the Banking Sector
A major conflict is brewing between the crypto industry and traditional banks over the future of interest-bearing stablecoins. Banks are lobbying hard against bills that would allow stablecoin issuers to pay "dividends" to holders, fearing a massive drain on traditional savings accounts. This tension has slowed down the adoption of digital payments at the retail level. As of February 2026, the market is split: some users are moving toward unregulated, high-yield synthetic stablecoins, while others are retreating to "safe" fiat-backed options. The outcome of this legislative battle will determine the scale of crypto's integration into the global economy.
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