Every once in a while, somebody gives me cash. I'll hang on to it in case I ever need it as I don't want to make a trip to the bank to deposit. If I spend it, then I have to deal with carrying change.
Sometimes I'll bump into somebody who needs cash. I give them the cash and have them send me the equivalent via Cash App.
It's not quite the same as stablecoins. But, there is a potential disintermediation of banks if people catch on that they can exchange fiat and stablecoins on their own. It's not widespread yet as there aren't enough people using stablecoins. But we'll reach the tipping point eventually.
If we bypass banks for onramp/offramp, what use do they have? Certainly, they'll hold on to cash and treasuries that back stablecoins. They'll earn interest from that at industrial scale.
So, I'm thinking of the government printing treasuries straight into banks to convert to stablecoins. If stablecoins need to grow to meet demand, they're going to suck up cash and notes like nobody's business.
RE: Stablecoins Will Dominate Transactions