Stablecoins threaten banks 2025, according to Canadian investor Kevin O’Leary. Speaking at the Consensus 2025 conference, he said that leaders in the currency and payment industries actively oppose stablecoins because they fear losing profits from transaction fees.
O’Leary believes that the growing use of stablecoins like Tether (USDT) and USD Coin (USDC) threatens to disrupt the outdated foreign exchange market, which handles trillions of dollars daily.
Why Stablecoins Threaten Banks 2025
“Currency trading is old, ugly, and inefficient,” O’Leary stated. “Regulated stablecoins are the greatest threat to this monopoly. Once approved, the system will be faster, cheaper, and more transparent.”
He explained that banks and payment providers lobby against stablecoin adoption to protect their traditional revenue streams. However, even without full regulation, stablecoins are already gaining ground.
According to O’Leary, over 90% of financial companies working with Fireblocks now use stablecoins for global payments. This includes cross-border transfers and internal settlements.
US Lawmakers Are Moving on Stablecoin Regulation
The stablecoins threaten banks 2025 narrative is linked to pending U.S. legislation. O’Leary said American lawmakers are preparing a legal framework that could legitimize stablecoin use on a global scale.
Once the U.S. passes such laws, he believes other countries — including the UAE, Switzerland, and the UK — will follow quickly. That would give stablecoins a legal foundation and accelerate adoption worldwide.
Meanwhile, financial service providers are trying to block these changes. Their goal is to delay the legal rollout and preserve their control over payments and currency flows.
Stablecoins Bring Efficiency and Transparency
O’Leary also pointed out that stablecoins remove inefficiencies. Unlike traditional payments, blockchain transactions using stablecoins are instant, traceable, and low-cost.
“Banks don’t hate stablecoins because of volatility. They fear the competition,” he said.
He argued that blockchain technology forces banks to compete, and that is what makes them uncomfortable.
As a result, many institutions are resisting change, even as the financial world moves toward digital, tokenized money.
The Global Shift Toward Stablecoins
Despite the regulatory uncertainty, the demand for stablecoins is already surging. Their practical benefits — such as low fees and fast settlement — make them attractive for businesses and individuals alike.
The stablecoins threaten banks 2025 trend signals a major shift in how global finance will work. The legacy system is being challenged by digital assets that are faster, clearer, and more cost-efficient.
This trend will likely accelerate as legal frameworks become more defined.
Conclusion: Stablecoins Threaten Banks 2025 and Force Innovation
The stablecoins threaten banks 2025 movement is reshaping financial debates worldwide. As Kevin O’Leary explained, the fight between traditional finance and blockchain-based alternatives is just beginning.
But one thing is clear: stablecoins are no longer optional. They are becoming a core part of how money moves — and banks must now learn to adapt or risk falling behind.
