JPMorgan CFO: Stablecoin-Rendite „offensichtlich gefährlich und unerwünscht“

tldr; JPMorgan CFO Jeremy Barnum criticized yield-bearing stablecoins during the bank’s Q4 earnings call, labeling them as ‚obviously dangerous and undesirable.‘ He argued that these stablecoins create a parallel banking system resembling deposits with interest but lack the regulatory safeguards developed over centuries. Barnum’s comments reflect concerns about competition from stablecoins, which offer higher yields compared to traditional banking systems. Regulatory measures like the Digital Asset Market Clarity Act aim to address these issues.

*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Then Visa and its CIRCLE pilot program must be giving them real headaches:

„Visa’s stablecoin pilots with Circle are progressing well, enabling faster, near-instant payments for creators, freelancers, and businesses by allowing them to settle Visa obligations and receive payouts in USDC, reducing traditional delays and improving liquidity, with key US bank partners like Cross River Bank and Lead Bank already participating, and broader expansion planned for 2026.

Key Progress Points:

Stablecoin Payouts:

Businesses using Visa Direct in the U.S. can now send payouts directly to recipients‘ stablecoin wallets (like USDC), offering instant cross-border access to earnings for creators and gig workers.

Settlement in USDC:

U.S. banks and fintechs can settle their VisaNet obligations using Circle’s USDC, bypassing traditional fiat processes for faster, 24/7 settlement on blockchains like Solana.

Early Adopters:

Major banks, including Cross River Bank and Lead Bank, are actively participating in the U.S. settlement pilot.

Benefits Realized:

The program offers near-instant money movement, unlocks capital by reducing large cash holdings, and provides greater liquidity and predictability for financial institutions.

Expansion Plans:

Visa plans a broader rollout of these stablecoin capabilities in the U.S. and globally throughout 2026, as demand grows and regulatory clarity improves.

Overall:

The pilots are proving successful, moving stablecoins from a niche concept to a core part of Visa’s payment infrastructure for improved speed, flexibility, and efficiency in global money movement, notes The Block, Barron’s, and CoinDesk. “

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Must be some sleepless nights in traditional banking these days.

Pretty cool for Cryptocurrency adoption.

Technically banks aren’t necessary anymore. An entity doesn’t need to custody everyone’s assets and profit from doing so.

Who owns what can be managed by no one through blockchain technology.

But banks want their fees and control. They want to maintain the system that gives them power.

People could self custody and send value to each other using blockchain rails. But no. Can’t have that future because the current power already has the population by the balls.