Austin Campbell says stablecoins move bank deposits, not destroy them

On CoinDesk's The Policy Protocol, the Zero Knowledge CEO called stablecoin-driven deposit flight mathematically impossible Banks have spent months warning that stablecoins could drain their deposit base. Austin Campbell thinks the math says otherwise. On a recent episode of CoinDesk’s The Policy Protocol podcast, published around October 23, 2026, the founder and CEO of Zero Knowledge argued that stablecoins cannot cause net deposit flight from the banking system. His view: the money changes hands, but it never actually leaves. Campbell’s case rests on a simple observation about plumbing. Every time a stablecoin is created or redeemed, a bank deposit moves from one account to another. Stated plainly, when someone buys a stablecoin, their dollars land in somebody else’s bank account. When they redeem, the trip runs in reverse.

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