LETTER: Congress Must Act Before Stablecoins Undermine Rural Credit

As someone who’s spent a lifetime in rural Louisiana, I’ve seen how closely our communities depend on the health of our local banks. For farmers and small businesses, credit from those banks isn’t just convenient — it’s essential. It’s what allows producers to buy seed, equipment, and fuel, and to keep their operations running through unpredictable seasons.

That’s why I’m concerned about the rise of stablecoins — digital currencies that are starting to compete with traditional bank deposits. If these platforms begin offering “rewards” or “yield” that mimic interest, deposits could drain out of community banks and into unregulated digital markets. When that happens, rural credit dries up.

Community banks don’t just hold deposits; they turn them into loans for farms, small businesses, and working families. If those deposits leave, so does the ability to lend.

Louisiana’s farmers are already facing high costs and tight margins. They don’t need another financial trend making access to credit harder. Congress should act to ensure stablecoin rules protect the local banks that keep our communities growing.

– Don Willard