Why Banks Are Terrified of Ripple & XRP

Crypto vs Banks - Crypto is perceived as "bullying" traditional banks by taking their customers and money, leading to banks lobbying against crypto, particularly stablecoins [1][2] - Banks are allegedly terrified of losing profits due to the higher Annual Percentage Yield (APY) offered in the Decentralized Finance (DeFi) space compared to traditional bank interest rates [19][20][21] - Banks are seen as protecting $187 billion in payment fees, contributing to their substantial profits [23][24] Stablecoins and Regulations - US banks are lobbying to block stablecoin interest, fearing trillions in deposit outflows [2] - Stablecoins are viewed as a potential threat to regional banks reliant on customer deposits, with concerns about paychecks being issued in stablecoins [11][12] - The Bank of England is proposing a cap on individual stablecoin holdings, limiting ownership to £10,000-£20,000 per person, citing systemic risk [27] Crypto's Rise and Bank's Response - The narrative around banks hating crypto changed in 2025, with banks starting to offer crypto trading [5][29] - Banks attempted to discredit crypto through negative publicity and media manipulation, but these efforts have largely failed [4][5][29][30] - Ripple and XRP are seen as a significant threat to banks due to their potential to outperform traditional banking technologies [32]