Related papers: Banking 2.0: The Stablecoin Banking Revolution -- How Digital Assets Are Reshaping Global Finance

Banking 2.0: The Stablecoin Banking Revolution -- How Digital Assets Are Reshaping Global Finance

URL: http://arxiv.org/abs/2508.11395v1
Date: Fri, 15 Aug 2025 11:05:16 GMT
Title: Banking 2.0: The Stablecoin Banking Revolution -- How Digital Assets Are Reshaping Global Finance
Authors: Kevin McNamara, Rhea Pritham Marpu,
Abstract summary: Stablecoins are the most significant evolution in banking since the abandonment of the gold standard.<n>They seamlessly integrate cryptocurrency innovation with traditional finance infrastructure.<n>This transformation rivals artificial intelligence as the next major disruptor in the financial sector.
Score: 0.0
License: http://creativecommons.org/licenses/by/4.0/
Abstract: The global financial system stands at an inflection point. Stablecoins represent the most significant evolution in banking since the abandonment of the gold standard, positioned to enable "Banking 2.0" by seamlessly integrating cryptocurrency innovation with traditional finance infrastructure. This transformation rivals artificial intelligence as the next major disruptor in the financial sector. Modern fiat currencies derive value entirely from institutional trust rather than physical backing, creating vulnerabilities that stablecoins address through enhanced stability, reduced fraud risk, and unified global transactions that transcend national boundaries. Recent developments demonstrate accelerating institutional adoption: landmark U.S. legislation including the GENIUS Act of 2025, strategic industry pivots from major players like JPMorgan's crypto-backed loan initiatives, and PayPal's comprehensive "Pay with Crypto" service. Widespread stablecoin implementation addresses critical macroeconomic imbalances, particularly the inflation-productivity gap plaguing modern monetary systems, through more robust and diversified backing mechanisms. Furthermore, stablecoins facilitate deregulation and efficiency gains, paving the way for a more interconnected international financial system. This whitepaper comprehensively explores how stablecoins are poised to reshape banking, supported by real-world examples, current market data, and analysis of their transformative potential.

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