Banks could slow stablecoin growth by paying savers more, BIS paper finds
60-second summary
A BIS working paper reveals that a one‑basis‑point increase in U.S. bank deposit rates could dampen stablecoin expansion, trimming ten‑week growth from 15 % to 12 %. The finding suggests higher‑yield bank products lure savers away from crypto‑linked assets, potentially slowing demand for stablecoins and pressuring their market momentum. Analysts warn this shift could tighten liquidity for token issuers.
A BIS working paper found a 1 basis point rise in U.S. bank deposit rates predicted slower stablecoin growth, cutting ten-week growth from 15% to 12%.