Survey: Consumers Fear Stablecoins Could Drain Deposits, Reduce Community Lending
By CU Today Staff —
WASHINGTON—As the U.S. Senate prepares to take up the CLARITY Act and broader digital asset legislation, a new survey commissioned by the American Bankers Association found consumers overwhelmingly support restrictions on stablecoin rewards if they threaten bank deposits and local lending.
According to the Morning Consult survey of 2,004 adults, 57% of respondents said Congress should prohibit crypto companies from offering interest-like rewards on stablecoins if doing so could pull deposits away from banks and reduce lending in local communities, compared with 19% who disagreed. In addition, 61% said lawmakers should be cautious about creating digital asset rules that could undermine the existing financial system, particularly community banks.
The poll also found that 69% of consumers would be concerned if banks had less funding available to make loans to individuals and businesses. ABA President and CEO Rob Nichols said the results demonstrate that Americans do not want policymakers to adopt rules that could weaken lending and economic growth by allowing stablecoin issuers to compete for deposits through reward programs.
Despite growing attention in Washington, the survey suggests digital assets remain a low priority for most consumers. Nearly three in five respondents (58%) said cryptocurrencies, stablecoins and other digital assets are not relevant to their day-to-day financial lives, while only 24% said such products could provide meaningful benefits for people like them.
Consumer adoption also remains limited, according to the survey. Just 17% said they currently own digital assets, 28% said they have ever owned them, and six in 10 respondents indicated they are unlikely to buy, hold or use digital assets over the next 12 months. The survey was conducted May 22-24 and carries a margin of error of plus or minus two percentage points.
Originally reported by CU Today.