🚨BREAKING🚨
🏦 Banks Could Slow Stablecoin Growth: BIS research suggests that higher bank deposit rates could reduce demand for stablecoins like USDT and USDC.
📉 Growth Impact: A 1-basis-point increase in bank deposit rates was associated with a decline in stablecoin market-cap growth over 10 weeks from 15% to 12%.
💰 USDC More Affected: The relationship was stronger for Circle’s USDC than Tether’s USDT.
⚠️ Banking Competition: Higher savings rates could help banks retain deposits as stablecoins gain adoption.
🧭 Important Caveat: The study does not prove that stablecoins are causing bank deposit losses, and its findings are based on a limited high-interest-rate period.
$USDC
#bank #USDC
🏦 Banks Could Slow Stablecoin Growth: BIS research suggests that higher bank deposit rates could reduce demand for stablecoins like USDT and USDC.
📉 Growth Impact: A 1-basis-point increase in bank deposit rates was associated with a decline in stablecoin market-cap growth over 10 weeks from 15% to 12%.
💰 USDC More Affected: The relationship was stronger for Circle’s USDC than Tether’s USDT.
⚠️ Banking Competition: Higher savings rates could help banks retain deposits as stablecoins gain adoption.
🧭 Important Caveat: The study does not prove that stablecoins are causing bank deposit losses, and its findings are based on a limited high-interest-rate period.
$USDC
#bank #USDC