BIS Study Finds Higher Deposit Rates May Slow Stablecoin Growth
A study by the Bank for International Settlements indicates that higher bank deposit rates could slow stablecoin growth, with USDC showing a stronger reaction.
According to a study published by KuCoin, higher bank deposit rates may potentially slow the growth trajectory of the stablecoin market. The research highlights that stablecoins such as USDC react more strongly to changes in traditional banking yields.
BIS Study Findings
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The Bank for International Settlements analysis points out the macroeconomic interplay between traditional financial institutions and digital asset alternatives. As traditional banking yields rise through increased deposit rates, capital retention in conventional accounts becomes more attractive relative to holding digital tokens.
Key facts
- A study by the Bank for International Settlements indicates higher bank deposit rates may slow stablecoin growth.
- USDC showed a stronger reaction to deposit rate changes compared to other assets, according to KuCoin.
Source: news.google.com
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