Coinbase's head of policy, Faryar Shirzad, has refuted Bank of America's concerns that stablecoins could harm U.S. banks by reducing deposits. Shirzad argues that these concerns overlook the primary demand for stablecoins, which comes from outside the U.S., enhancing the dollar's global influence rather than competing with domestic banks. He highlights that stablecoins are crucial for emerging markets to hedge against currency devaluation and provide underserved populations with access to dollars. Shirzad also notes that about two-thirds of stablecoin transactions occur on decentralized finance (DeFi) platforms, which operate outside the traditional U.S. banking system. He asserts that viewing stablecoins as a threat is a misinterpretation, as typical stablecoin users differ from community bank customers, with little overlap between the two groups. Shirzad suggests that banks could leverage stablecoins to enhance their services.