According to Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation at a Brookings Institution event last month, stablecoins could have a potentially very strong impact on the American banking system.

Since American banks have consistently desired to provide cryptocurrency services, such as keeping up with consumers' digital assets, stablecoins may someday be necessary if the United States would like to further grow and establish an American central bank digital currency (CBDC).

"The development of a payment stablecoin could fundamentally alter the landscape of banking," Gruenberg said. He claimed that payment stablecoins could drastically alter the way that credit is extended within banking, "possibly leading to forms of credit disintermediation that could harm the viability of many U.S. banks and potentially create a foundation for a new type of shadow banking."

Gruenberg has also stated that the government's dealings with stablecoins will be required to work in conjunction with the Federal Reserve's FedNow real-time payments network, which will come out later in 2023. Gruenberg added that "the potential for non-bank stablecoins to disintermediate community banks from their local communities is an issue that should also be carefully explored and considered."

Since President Joe Biden has not come up with a fixed resolution or concrete decision in terms of finding a replacement for Gruenberg, who has been the FDIC chairman in years past, is presently in the seat on an interim basis. Over a month ago, the White House voted for two individuals to become part of the board, and is preparing now to choose the next chairman or to put him into place.

Gruenberg, however, still remains skeptical when it comes to the true effectiveness of cryptocurrency. "Thus far we haven't seen much evidence of benefit," he said last month regarding this matter. "It remains to be demonstrated whether there's some potential there."