RT Bridget (@bridge__harris)A "stablecoin bank" could take many diff forms, but the one we explored in the piece resembled a narrow bank where deposits are 1:1 backed with T-bills --- Customers could automatically earn T-bill yield on their deposits- Credit issuance itself could be done in stablecoins- From a UX perspective, customers would still just be tapping a piece of plastic ... when a customer spends at a retailer, it would functionally just be sending money from one wallet to another.The challenges ...

RT TBPN (@tbpn)We asked @bridge__harris (Associate at @foundersfund) what a stablecoin bank could look like.“From a consumer angle, it would look exactly like a narrow bank; every deposit is one-to-one backed with T-bills, so it’s super safe.""But that safety is why it scares regulators: if too much money flows out of fractional-reserve banks and into a stablecoin bank, it threatens the Fed and the broader U.S. system.""That’s why narrow banks could never get a charter or master account; it’s a direct chall ...