Analysts: Stablecoins are unlikely to grow to a level sufficient to absorb US debt.

According to Berenberg economist Atakan Bakiskan, stablecoins are unlikely to grow to a level sufficient to absorb significant amounts of US government debt or compete with bank deposits. Because the Genius Act prohibits issuers from paying interest, stablecoins cannot compete with interest-bearing bank accounts, thus reducing their attractiveness. Furthermore, if funds flow from deposits to government-backed stablecoins, banks' ability to lend or purchase government bonds may decline.