Interest is supposed to come from the bank making productive use of the funds deposited with them. How is it unfair for another business to do that very thing?

Undisciplined

"The standoff centers on whether — and how — crypto platforms can offer customers rewards for holding stablecoins.

Digital asset firms argue they should be allowed to pass along rewards generated by stablecoin reserves to customers. The banking industry says those rewards would unfairly compete with interest-bearing bank accounts and could open a slippery slope toward cannibalizing deposits — a result it warns could have huge impacts on traditional lending."

...Historically, the banks win this one 99% of the time.

econ

"The standoff centers on whether — and how — crypto platforms can offer customers rewards for holding stablecoins.

Digital asset firms argue they should be allowed to pass along rewards generated by stablecoin reserves to customers. The banking industry says those rewards would unfairly compete with interest-bearing bank accounts and could open a slippery slope toward cannibalizing deposits — a result it warns could have huge impacts on traditional lending."



...Historically, the banks win this one 99% of the time.