BIS Paper Shows Banks Can Slow Stablecoins via Deposit Rates
A quantitative paper published by the Bank for International Settlements indicates traditional banks can impact stablecoin adoption.
Traditional financial institutions can slow down stablecoin adoption simply by raising their deposit rates, according to a quantitative paper published by the Bank for International Settlements (BIS).
BIS Quantitative Findings
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The research paper outlines the direct mechanics between traditional banking deposit yields and the competitive pressure exerted by digital asset alternatives. By adjusting deposit rates upward, commercial banks can retain customer capital that might otherwise flow into stablecoin instruments.
Key facts
- A quantitative paper was published by the Bank for International Settlements (BIS).
- The research findings indicate that banks can slow stablecoin adoption.
- The mechanism relies solely on raising traditional deposit rates.
Source: news.google.com
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