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Larry Tabb has raised concerns that paying interest on stablecoins could disintermediate U.S. bank deposits and reduce bank lending.
Tabb suggests that if stablecoins were to pay interest, it would create an uneven playing field with traditional bank deposits. He argues that both real and digital dollars should be treated equally and highlights that if users want to earn interest on stablecoins, they should use lending applications and accept the associated credit risk.