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community

The American Bankers Association warns: Allowing stablecoins to pay interest will accelerate deposit outflows and severely impact community bank lending

According to an article in the American Bankers Association (ABA) Journal, experts including the ABA's chief economist point out that the recent research report by the White House Council of Economic Advisers (CEA) on the issuance of yield from payment stablecoins raises the wrong questions and may mislead policymakers.The CEA report mainly explores "how prohibiting the issuance of yield from payment stablecoins will affect bank lending," concluding that banning yields would only increase bank lending by about $1.2 billion, with minimal impact.However, the ABA believes that the real policy concern is not the consequences of "prohibition," but the risks that may arise from "allowing" the issuance of yield from payment stablecoins: accelerating deposit outflows, allowing yields to stimulate households and businesses to move funds from bank deposits (especially community banks) to stablecoins, which would have a significant impact when the market size expands to $1-2 trillion. ABA analysis shows that loans in Iowa alone could decrease by $4.4 billion to $8.7 billion as a result.Impact on community banks: Deposit outflows will force community banks to replace funding with higher-cost wholesale financing (such as Federal Home Loan Bank advances), raising their funding costs and thereby reducing loans to local households and small businesses. It is not a harmless "reshuffling": The CEA believes that deposits are merely "reshuffled" within the banking system, with overall impact being minimal.However, the ABA points out that deposits flowing from community banks to a few large institutions or stablecoin reserve accounts will harm sectors that rely on relationship-based bank lending. The ABA believes that prohibiting the issuance of yield from payment stablecoins is a prudent protective measure that allows stablecoins to mature as a tool for payment innovation rather than becoming a source of economic risk that substitutes for insured deposits.

Bittensor co-founder accuses Covenant AI founder of betraying the community and plans to launch a locked staking mechanism

Bittensor co-founder Jacob Robert Steeves responded to the Covenant AI incident, stating that he was "deeply shocked" by the events of the past few days and accused Covenant AI founder Samuel Dare of causing serious harm to the protocol and community, betraying the trust of investors and users. He apologized to users who suffered losses due to the incident.Steeves stated that the original intention of Bittensor was to combat greed and selfishness in human nature, promoting AI to be collectively owned by all participants through a permissionless mechanism. He emphasized that while this incident exposed vulnerabilities in the system, it would also encourage the protocol and community to further enhance their risk resilience.Regarding future directions, Steeves proposed advancing the "Locked Stake" mechanism, introducing a "time + stake" commitment dimension at the protocol layer to improve transparency and investor protection, thereby reducing similar risks. He noted that this plan was originally designed with the participation of Samuel Dare.Additionally, he mentioned that the development related to subnets 3, 39, and 81 would continue to be driven by the community, and the overall functionality and vision would not change. Steeves emphasized that Bittensor remains one of the most decentralized AI protocols currently and will continue to promote the development of open AI, with plans to move towards training larger-scale models. In the future, they will train a 1 trillion parameter model.
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