Coinbase has refuted claims that stablecoins pose a threat to the banking system, labeling the notion of 'deposit erosion' as a myth. In a recent blog post, the crypto exchange argued that there is no significant link between stablecoin adoption and deposit outflows at community banks. Coinbase emphasized that stablecoins serve as payment tools rather than savings accounts, offering a competitive alternative to banks' $187 billion annual swipe-fee revenue. The exchange also challenged a US Treasury Borrowing Advisory Committee report that projected a $6 trillion potential deposit flight, despite only forecasting a $2 trillion stablecoin market by 2028. Coinbase highlighted that most stablecoin activity occurs internationally, particularly in regions with weak financial infrastructure, thus reinforcing dollar dominance without impacting US credit availability. The company noted positive correlations between bank stock performance and crypto firms following the passage of the GENIUS Act, suggesting that stablecoins and banks can coexist successfully.