Quote from: adaseb on May 27, 2024, 04:20:19 AM

They could have their own bank but that’s not the goal of stablecoins. When stablecoins were first released it was so users could transfer money from exchanges such as Bitfinex to exchanges which had tons of altcoins which the bigger exchanges didn’t have.

So the user wouldn’t need to sell their US dollars, buy bitcoin, send bitcoin to some alt exchange and then sell that bitcoin for US dollar and finally buy what alt coin they want. This is too many transactions and hence why stablecoins were introduced because you could send back and forth between exchanges.

There is no point is having a bank for stablecoins however. Just send to your exchange, sell for fiat and withdraw that fiat to your bank and buy whatever you want.

Stablecoins have revolutionized the cryptocurrency world, simplifying value transfers between exchanges. This is just the beginning of their potential. Acting as digital cash, stablecoins are setting the stage for a new era in financial services. We are already seeing the rise of crypto lending platforms and interest-bearing stablecoin accounts, which are early indicators of a broader evolution. These platforms, though not traditional banks, offer core banking functions like secure storage, yield generation, borrowing, and seamless payments, as far as I know. This trend reflects the growing integration of crypto with traditional finance, as institutional investors enter the space and regulators work to adapt.
Dedicated stablecoin institutions could bridge the gap between these two worlds, providing regulatory clarity and a familiar interface for traditional finance players, IMO. They would also streamline the currently fragmented stablecoin services, offering users a one-stop shop for their financial needs.While "bank" might not be the perfect term, the concept holds great promise. The crypto world often exceeds expectations, and the rise of stablecoin-centric financial institutions seems likely in the coming years, ushering in a new era of financial innovation