McKinsey in a 2022 report estimated that globally, banks stand to lose $2.1 trillion in annual revenue if a successful retail Central Bank Digital Currency (CBDC) is introduced.

That’s why no bank with an account at the Fed will ever launch a stablecoin unless the government instructs them to do so. It’s also why, at this stage of the industry’s development, there has been – and will likely continue to be – space for some non-bank entity to offer the stablecoin services that the crypto capital markets desperately require.