BIS Study Suggests Banks Can Slow Stablecoin Growth
A study by the Bank for International Settlements indicates that commercial banks can slow stablecoin growth by raising deposit rates.
Commercial banks could potentially curb the expansion of stablecoins by increasing their deposit rates, according to a study published by the Bank for International Settlements (BIS). The research outlines how traditional banking institutions might retain customer funds and moderate the adoption of digital assets by adjusting interest offerings on deposits.
BIS Study Findings
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The study examines the competitive dynamics between traditional banking deposits and alternative digital assets. By offering higher deposit rates, commercial banks can incentivize users to keep capital within the traditional banking system rather than shifting funds into stablecoins.
Key facts
- Research Origin: Published by the Bank for International Settlements (BIS).
- Core Mechanism: Commercial banks raising deposit rates.
- Report Objective: Slowing the growth and adoption of stablecoins.
Source: news.google.com
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