BIS Paper Links Higher Bank Deposit Rates to Slower Stablecoin Growth
Edited by Steinar Vigdel Kolnes, Editor, Oslo
A BIS working paper finds that higher deposit rates at U.S. banks are associated with slower stablecoin growth, with Circle’s USDC showing the strongest sensitivity.
Higher interest rates on U.S. bank deposits are associated with slower stablecoin growth, according to a working paper from the Bank for International Settlements.
The findings point to bank deposit pricing as a factor in stablecoin adoption, linking developments in the digital-token market to rates offered by traditional lenders.
Circle’s USDC was the most sensitive to changes in deposit rates in the study, according to Decrypt’s report on the paper.
Source: Decrypt
