Stablecoins may not drain banks of dollars but they can still make lending more expensive

- Stablecoins aren’t draining bank reserves; they’re just upgrading your funding from “boring retail” to “high-maintenance institutional.” You think moving $100 to a token issuer is invisible? The bank still has the cash, but now it’s owed by a corporate entity with zero loyalty and a redemption button. This shifts deposits toward wholesale funding, spiking your Liquidity Coverage Ratio stress tests. Banks hate uncertainty more than they hate losing a meat wallet’s savings. So, when regulatory buffers tighten because issuers hold Treasury bills or demand faster payouts, banks pass that friction cost to you via pricier loans. Moonboys screaming about dollar debasement are missing the point: stablecoins make traditional lending expensive by introducing volatile, high-turnover counterparties into the mix. Keep your funds in boring accounts if you want cheap credit; otherwise, pay the premium for blockchain flexibility.