Higher Bank Deposit Rates May Curb Stablecoin Growth, BIS Paper Finds
Edited by Steinar Vigdel Kolnes, Editor, Oslo
A BIS working paper links higher U.S. bank deposit rates to slower stablecoin growth over a ten-week period.
Banks offering savers higher returns could temper stablecoin growth, according to a Bank for International Settlements working paper reported by CoinDesk.
The paper found that a one-basis-point increase in U.S. bank deposit rates predicted a decline in ten-week stablecoin growth from 15% to 12%. One basis point equals 0.01 percentage point.
The finding suggests bank deposit rates may influence stablecoin expansion. The reported relationship points to slower growth, rather than a contraction in the stablecoin market.
Source: CoinDesk
