Today at Crypto, Stripe CEO says that Stablecoins will force banks to give users real interest in their deposits.
Stripe CEO says Stablecoins will let banks offer users a competitive interest in deposits
Stripe CEO Patrick Collison said Stablecoins will force banks to offer competitive interest rates to their customers as Stablecoin options have increased.
Collison cited the average savings rate offered to customer deposits in the US and Europe. He wrote:
“Depositors get something close to the market returns of capital. Currently, some lobbies are pushing to further limit all kinds of compensation related to post-Zenius deposits. The mandatory business here is obvious – cheap deposits are great, but consumer settlements feel like they’re in a losing position to me.”
According to data from RWA.xyz, Stablecoin’s market capitalization exceeded $292 billion in October. This is because the sector continued to grow following the comprehensive regulatory bill signed into law in the United States.
Recording “Uptober” Bitcoin ETFS Kickstart
The US-registered spot Bitcoin ETF launched its historically bullish month in October, launching its second-best week inflow since its launch, signaling updated investor optimism.
According to SoSoValue data, the Spot Bitcoin (BTC) ETF has recorded a cumulative net positive inflow worth $3.24 billion over the past week, roughly in line with a record of $3.38 billion for the week ending November 22, 2024.
The figure shows a sharp rebound from last week’s $902 million outflow. Analysts said the turnaround was attributed to growing expectations for another US interest rate cut, which improved feelings about risky assets.
Another rising expectations for US interest rate cuts have caused a “change in emotions,” attracting new investors in Bitcoin ETFs, and “conveying a four-week inflow to nearly $4 billion,” Iliya Kalchev, dispatch analyst for digital assets platforms, told CointeLegraph. “At current execution rates, Q4 flows could eliminate more than 100,000 BTC from the circulation, which is more than twice as new.”
“While the long-term holder distribution is relaxed, ETF absorption will accelerate, helping BTC build a stronger base,” he added.
The ongoing inflow of ETFs could provide Bitcoin with a significant tailbone in October. This is the second best month in Bitcoin in terms of average historical returns, often referred to as “up-to-bar” by crypto investors.
This week’s $3.2 billion temporarily pushed Bitcoin prices past $123,996 on Friday, according to TradingView data, the last seen six-week high for the world’s first cryptocurrency on August 14th.
“Very likely” Bitcoin cycle continues in some way: Gemini Executive
According to Crypto executives, Bitcoin’s four-year cycle may not unfold exactly the same as before, but that doesn’t mean the concept is completely dead.
“When it comes to the four-year cycle, I think it’s very likely that in reality we’re continuing to see some form of cycle,” Saad Ahmed, head of the APAC region at Crypto Exchange Gemini, told Cointelegraph in a sit-in interview at Token2049 in Singapore.
“In the end, it’s like people get really excited and overstretching themselves, then you see a crash and that’s like fixing the balance,” Ahmed said.
However, Ahmed said that an increase in institutional involvement in the crypto industry could help the market absorb some of its volatility. “You’ll see some of the volatility, the kind of flags, but in the end you’re driven by human emotions, so you still see some kind of cycle,” Ahmed said.