BIS Study Finds Higher Bank Deposit Rates Slow Stablecoin Growth
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Higher US bank deposit rates are linked to slower stablecoin market growth, according to a new research paper. Researchers found that stronger returns on bank deposits may reduce demand for dollar-backed digital tokens. Circle’s USDC showed greater sensitivity to deposit rate changes than Tether’s USDT. However, the findings do not establish that stablecoins have reduced overall bank deposits or lending. BIS research links rising bank deposit rates to slower stablecoin growth, with USDC reacting more strongly than USDT.
Source: Live Bitcoin News
