Banks could slow stablecoin growth by paying savers more, BIS paper finds
Summary
A study from the BIS indicates that commercial lenders might curtail the expansion of stablecoins by offering better returns to their customers. According to the research, lifting United States deposit interest by just a single basis point lowered the digital assets' rate of increase over a ten-week period from 15% to 12%.
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%.
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