Banks Could Slow Stablecoin Growth by Paying Savers More, BIS Paper Finds

Banks could slow stablecoin growth by paying savers more, BIS paper finds

A BIS working paper found a 1 basis point rise in U.S. bank deposit rates predicted slower stablecoin growth, cutting ten-week growth from 15% to 12%.

Banks Slow Stablecoin Growth by Raising Rates

A Bank for International Settlements paper shows that even small increases in bank deposit rates could slow stablecoin adoption, particularly for USDC. The effect is stronger for USDC than USDT, reflecting user ties to the U.S. market.

BIS paper finds banks could slow stablecoin growth by raising rates

Rising bank rates could curb stablecoin growth, impacting monetary policy, regulation, and competition between banks and digital currencies.