Santander considers issuance of stablecoin, retail investor cryptocurrency services

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Banco Santander SA, a global bank, is considering expanding cryptocurrency services for retail investors and may launch a stablecoin pegged to the US dollar and euro. This plan is still in the early stages, similar to major banks like JPMorgan and Bank of America, as they are also researching stablecoins following positive regulatory changes in America.

However, the banking sector remains divided on stablecoins. Many organizations are concerned that stablecoins, especially those with interest rates, will reduce profits and compete with the traditional financial system. Senator Kirsten Gillibrand warns that interest-bearing stablecoins could undermine the retail lending market, affecting households and small businesses.

Professor Austin Campbell from NYU believes that stablecoins with interest rates disrupt the traditional banking model, but regulations limiting them only benefit the wealthy and bank executives.

Santander considers issuing stablecoinCurrent overview of the stablecoin market | Source: RWA.XYZ

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