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Banks Are Toast – And That’s Good News
Porter's Journal Issue #82, Volume #2

How Stablecoins Will Lead To Better Governance
This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
The GENIUS Act heads to the president’s desk… Shares of Circle rose 32%… Stablecoins will shatter the entire banking system… Innovation happens at the fringes: meet Dave… The government will be forced to manage its currency responsibly… Cryptocurrencies surge under new legislation… |
Table of Contents
Yesterday, the U.S. House of Representatives voted 308-122 to pass the Guiding And Establishing National Innovation For U.S. Stablecoins (GENIUS) Act.
This legislation, which the Senate approved in June, lays out new standards and legal protections for issuers of stablecoins. The bill is now headed for President Donald Trump’s desk, where he is expected to sign it.
Shares of Circle Internet (CRCL), the purveyor of the widely used stablecoin USDC, rose from $190 to over $250 on the news.

As you know (and as I wrote about on Wednesday), I believe the development of stablecoins represents the biggest change in the world’s banking system since the advent of the telegraph. Western Union allowed consumers and institutions to send money, virtually immediately, at very low cost, to almost anywhere in the world.
This innovation created enormous new, global markets for commodities, driving down prices and creating tremendous wealth. Argentina, for example, became one of the richest countries in the world in the two decades after the installation of its first undersea cable to Europe in August 1874. Argentina saw its economy grow 7.5x in 20 years.
Stablecoins represent a way to completely disintermediate the entire banking system, replacing vaults with cryptography, and expensive private payment networks with the free internet. They also contain the key technological innovations necessary to remove expensive intermediaries between lenders and savers and between merchants and customers. This means incredible new services and benefits for consumers and, almost as good, the demise of traditional banks.
There’s nothing more frustrating to me than having to deal with banks, who refuse to pay a reasonable amount of interest on deposits, just to manage my company’s payroll. I don’t need the bank’s help to do this. The technology exists to pay my employees every day, immediately (not twice a month), using cryptography, the internet, and their cell phones.