Banks in the Age of Stablecoins: Lessons from Their Historical Responses to Financial Innovations

Samuel J. Hempel, Jp Perez-Sangimino and Jessie Wang
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Samuel J. Hempel: https://www.federalreserve.gov/econres/sam-hempel.htm

No 2026-05-01-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: The expansion of stablecoins has moved digital payment tokens from the periphery of financial markets to the center of policy discussions. With a global market capitalization in the mid-hundreds of billions of dollars and annual settlement volumes in the trillions as of 2025, stablecoins are increasingly viewed not merely as crypto‐market infrastructure but as potential competitors to traditional transaction accounts, particularly in payment processing, settlement functionality, and as short-term stores of value for transaction balances.

Date: 2026-05-01
New Economics Papers: this item is included in nep-fdg, nep-his, nep-mon and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:103193

DOI: 10.17016/2380-7172.4017

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