๐จBREAKING๐จ
๐ฆ Banks Could Slow Stablecoin Growth: BIS research suggests that higher bank deposit rates could reduce demand for stablecoins like USDT and USDC.
๐ 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%.
๐ฐ USDC More Affected: The relationship was stronger for Circleโs USDC than Tetherโs USDT.
โ ๏ธ Banking Competition: Higher savings rates could help banks retain deposits as stablecoins gain adoption.
๐งญ 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
๐ฆ Banks Could Slow Stablecoin Growth: BIS research suggests that higher bank deposit rates could reduce demand for stablecoins like USDT and USDC.
๐ 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%.
๐ฐ USDC More Affected: The relationship was stronger for Circleโs USDC than Tetherโs USDT.
โ ๏ธ Banking Competition: Higher savings rates could help banks retain deposits as stablecoins gain adoption.
๐งญ 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