You must be wondering why banks are against stablecoins and why they want to suppress stablecoins in the Clarity Act. They are a lot of reasons for this attitude, but here are two major reasons:
1- Stablecoins Compete Directly With Bank Deposits:
Banks make money using our deposits, by lending them out and by investing them. If people move their money into $USDT , $USDC or $USD1 , banks will lose their deposits. Low deposit means low income and many banks may have to shutdown.
2- Loss Of Payment Control:
Currently, banks control payments, which gives them huge power. If people move to stablecoins, they will have direct control over their funds, thus resulting in loss of power for banks.(Do not reply to this)
