The Battle Between Tokenized Deposits and Stablecoins: The Future of Finance Is Not Replacement, But Integration


Author: Simon Taylor
Translation: Block unicorn

Banks create money, while stablecoins facilitate the flow of money. We need both.

Proponents of tokenized deposits say: "Stablecoins are just unregulated shadow banking. Once banks offer tokenized deposits, everyone will prefer banks." Some banks and central banks like this claim.

Proponents of stablecoins say: "Banks are dinosaurs. We don’t need them on-chain at all. Stablecoins are the future of money."
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