Dr. Ozan Ozerk Calls for Pragmatism in the Stablecoin Debate: "Banks and Crypto Need Each Other"

The growing rivalry between traditional banks and the cryptocurrency industry has taken centre stage once again - this time over the rise of stablecoins and their potential impact on global finance.

In a recent article for the Forbes Finance Council, Dr. Ozan Ozerk, founder of EMBank and OpenPayd, urges both sides to abandon rhetoric and focus on practical collaboration. He argues that while stablecoins pose some challenges to the existing financial order, they also represent a significant opportunity for innovation and efficiency - if banks are willing to engage constructively.

At the heart of the current dispute lies a controversial claim from US banking associations. They argue that a regulatory loophole could allow crypto exchanges to pay interest on stablecoin holdings, potentially prompting a $6.6 trillion outflow from traditional bank deposits - a figure that, they claim, could threaten credit creation and economic stability.

But according to Dr Özerk, that number simply doesn't add up. "The $6.6 trillion figure is being taken wildly out of context," he says. "It refers to the total amount of liquid money, M1, in the US economy. The Treasury report being cited never suggested all of that could move into stablecoins."

In fact, the same report projects that stablecoins could grow to around $2 trillion by 2030, with perhaps a quarter of that sitting on exchanges. "That means the realistic figure for potential deposit movement is somewhere between $400 and $700 billion," explains Dr Özerk. "It's not insignificant, but it's a far cry from the apocalyptic numbers being circulated."

As the founder of both a licensed European bank and a global fintech firm offering stablecoin payment rails, Dr Özerk has a unique perspective. He recognises that the rise of digital assets presents a challenge to banks' traditional business models, but insists that the answer is not to resist progress. "Stablecoins are improving payments infrastructure, offering faster settlement and better returns. Rather than viewing them as a threat, banks should see them as a chance to evolve."

Dr Özerk also highlights a key regulatory imbalance: "Crypto exchanges that act like banks aren't held to the same standards as banks themselves. That's a fair concern. But applying decades-old banking regulation to blockchain technology won't work. We need modern, tailored frameworks."

He envisions a future in which banks and crypto platforms collaborate, rather than compete - leveraging each other's strengths. "Banks have deep regulatory expertise and risk management experience. Crypto firms bring speed, innovation and transparency. Together, they can build a stronger, more resilient financial ecosystem."

He cites partnerships such as JPMorgan's collaboration with Coinbase as early signs of this emerging trend. "This is what the final stage of change looks like, acceptance and cooperation," he concludes. "The future of finance isn't about one side winning. It's about finding the balance where both can thrive."
The full version of the article can be found here on Forbes Finance Council website.

Contact Person: Dr. Ozan Ozerk
Email: info@ozanozerk.com
Country: United Kingdom
Address: The Bower, 207-211 Old Street, London, England, EC1V 9NR, UK
Website: https://www.ozanozerk.com/

Dr. Ozan Özerk, born in Nicosia, Cyprus in 1979 and raised in Norway by academic parents specializing in education and learning disabilities, has built a remarkable career bridging medicine, technology, and finance. After serving as a Norwegian Armed Forces Ranger and completing medical school at the University of Oslo (2000-2008), he co-founded the pioneering social network Biip.no in 2005, which was acquired by Egmont and Nettavisen for over 100 million krone in 2008.

Following years as an emergency room doctor until 2015, he pivoted to fintech, establishing a portfolio of successful ventures including OpenPayd (2018), a London-based Banking as a Service provider; EMBank (2018), a European Central Bank-licensed institution in Lithuania; Ozan SuperApp (2018), offering financial solutions across Europe and Turkey; Eurotrader (2018), a regulated retail broker; and Bitpace (rebranded from Lydiax in 2023), providing blockchain and crypto payment solutions globally.

A Forbes Finance Council member since 2021, Dr. Özerk is recognized as a fintech pioneer and advocate for financial inclusion, frequently sharing his insights on the industry's future through interviews and opinion pieces.

This release was published on openPR.