In 2019, the launch of Libra sparked intense concern among banks about stablecoins disrupting their control over deposits and payments. The fear was that digital cash, easily accessible via smartphones, would lead to significant outflows from traditional bank accounts. However, a study by Professor Will Cong from Cornell University challenges this narrative. He argues that stablecoins, when properly regulated, complement the banking system rather than threaten it. Despite their rise, Cong's research indicates that there's little evidence of deposit erosion linked to stablecoin adoption. The banking model relies on friction, with checking accounts serving as the primary hub for financial transactions. Consumers typically stick with banks due to the convenience of bundled services, despite low interest rates. Cong emphasizes that stablecoins create competitive pressure, pushing banks to improve their offerings. Instead of losing business, banks are incentivized to enhance deposit rates and operational efficiencies. This competition benefits consumers by potentially increasing lending and service quality. Regulatory concerns about stablecoins, particularly regarding "run risk," are valid but not unprecedented. The GENIUS Act aims to address these fears by mandating that stablecoins maintain full reserves. This legislation provides a framework for ensuring safety, while existing financial management practices can be applied to new technologies. Furthermore, stablecoins promise to revolutionize cross-border payments by enabling instant transactions without intermediary delays, which could significantly improve liquidity management for businesses. The potential for a more efficient banking infrastructure is substantial, moving away from outdated systems reliant on legacy technology.