Jefferies analyst: Stablecoin craze may erode traditional bank profits.

CoinFeed reported on March 11th, citing CoinDesk, that investment bank Jefferies released a report stating that as the application of digital dollars expands in the payments and crypto markets, the proliferation of stablecoins may gradually erode the profits of traditional banks. Analysts predict that core bank deposits could decline by 3% to 5% over the next five years, leading to an average bank profit decrease of approximately 3%, primarily due to rising funding costs and pressure on fee income. The report argues that while stablecoins will not trigger a sudden run on deposits, the risk of gradual deposit outflows from emerging active revenue opportunities and payment use cases cannot be ignored.