Comment Scale (Score 1) 76
You have to account for scale with these big banks. If a million depositors have just $10,000 in their account, a reasonable cushion for emergencies, that's $10 billion dollars. Citi has 200 million accounts globally.
Compounding their problems is that banks have been discouraging accounts with high dollar amounts. They don't want to be required to cover the potential large outflow of cash if a billionaire decides they want to pay cash to buy some company, and takes out $20 million all at once. This pushes those accounts to either commercial banks, t-bills, or some sort of alternative finance. Stablecoin is just one of those alternative finance avenues.