, particularly focusing on the contentious issue of stablecoin interest payments.){kind=link}
Remy Blaire is joined by Gareth Jenkinson, the Head of Multimedia at Cointelegraph to discuss the ongoing tensions between traditional finance and decentralized finance (DeFi), particularly focusing on the contentious issue of stablecoin interest payments.
“The real conflict of interest here is between the cryptocurrency industry in general at large and of course traditional financial institutions i.e. banks.” – 01:44
Remy opens the conversation by highlighting the lobbying efforts of U.S. banks, led by organizations such as the Bank Policy Institute and the American Bankers Association, who are advocating for a blanket ban on interest payments for stablecoins. Gareth provides insight into the conflicting feedback the U.S. Department of Treasury is receiving from various stakeholders in the cryptocurrency sector. He notes that Coinbase has recently urged the Treasury to limit any ban on stablecoin interest payments exclusively to stablecoin issuers, while allowing non-issuers, like crypto exchanges, to continue offering interest on staked stablecoins.
As the discussion unfolds, Gareth emphasizes the underlying conflict of interest between the cryptocurrency industry and traditional financial institutions. He explains that banks are concerned about the potential disruption that DeFi poses to their business models, particularly as consumers gain the ability to earn interest on their assets without relying on traditional banking services. Remy and Gareth explore the implications of this conflict, considering how the traditional financial system is grappling with the reality of DeFi’s growing infrastructure and its impact on consumer behavior.
The conversation then shifts to the current state of the cryptocurrency market, with a particular focus on Bitcoin’s recent price action. Gareth shares his observations on Bitcoin’s disappointing performance, noting that it has fallen below the $100,000 mark multiple times during the week. He attributes this downturn to various macroeconomic factors, including the looming U.S. government shutdown and recent market downturns. Despite the short-term bearish sentiment, Gareth expresses optimism about Bitcoin’s long-term prospects, referencing predictions from industry experts that suggest a potential surge to a million dollars by 2028 or 2030, driven by monetary policy and institutional interest.