[Coinbase: The Argument That Stablecoins Will Cause Massive Bank Deposit Outflows Doesn't Hold Water] Odaily Planet Daily News – Coinbase Chief Policy Officer Faryar Shirzad wrote an article pointing out that banks across the United States are issuing warnings about stablecoins, claiming that stablecoins will siphon off deposits and weaken lending operations. This argument is now pervasive in mainstream media, distorting the evidence and reality of stablecoin usage. In fact, the notion that stablecoins will lead to massive bank deposit outflows is fundamentally flawed. There is no meaningful connection between the adoption of stablecoins and deposit outflows from community banks. Stablecoins pose no threat to lending, nor is there any reason to believe that large banks will face worse conditions. On the contrary, what we are truly witnessing is large financial institutions coordinating efforts to slow down innovation and protect the rents they earn from a payment system that has remained fundamentally unchanged for decades.