Banks Hold a Lever Over Stablecoin Adoption, BIS Economists Say
Summary
Researchers at the Bank for International Settlements reported that traditional lenders hold substantial sway over stablecoin usage. Rising returns paid on balances at American banks decrease the momentum of digital currency expansion. Among these assets, Circle’s USDC demonstrated the highest sensitivity to such interest adjustments.
A Bank for International Settlements working paper found that stablecoin growth slows when U.S. banks raise deposit rates, with Circle’s USDC most sensitive.
Source: Read the full story at Decrypt
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