Campbell Says Stablecoin Purchases Shift Deposits Between Banks

Austin Campbell, founder of Zero Knowledge Consulting and a former portfolio management lead at Paxos, said stablecoin purchases shift deposits between banks rather than drain the banking system’s total. Campbell called a systemwide deposit flight “mathematically not possible.” When someone buys a stablecoin, he said, the dollars land in another bank account, such as an issuer’s reserve account. Redemptions reverse that movement. One bank can lose deposits while another gains them, Campbell said. His argument concerns the total across the banking system; it does not rule out shifts among individual banks.