The CEO of a U.S. bank issued a warning this week that if policies allow users to hold interest-bearing stablecoins, it is estimated that about 30% of the total bank deposits in the U.S., approximately $17-18 trillion, will flow into stablecoins.

The interest-free deposit-raising business model of banks cannot continue indefinitely. They will have to seek funding from institutions, leading to higher capital costs, which will further propagate to downstream lending, potentially changing the entire macroeconomic operating logic.