bisresearch

BIS economists released a working paper showing that when U.S. banks increase deposit rates, the growth of stablecoins slows. The study used U.S. data from 2019 and found Circle’s USDC to be the most sensitive to those rate changes. This highlights how traditional banking policy can directly affect the expansion of digital dollar tokens. The result suggests that banks’ deposit rate decisions can act as a lever on stablecoin adoption. The analysis focused on the relationship between bank deposit rates and stablecoin issuance growth.

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