USDC faces bank-rate pressure – Can Visa’s payments push offset it?
Photo: AMBCrypto
Even a tiny rise in bank deposit rates could slow stablecoin growth significantly. According to a recent study by the Bank for International Settlements (BIS), a one basis point increase in bank interest rates reduces the growth in market capitalization of stablecoins by about 3% over ten weeks. Given that the overall growth is at approximately 15% annually, this decrease would reduce the amount of growth to be approximately 12% annually. USD Coin [USDC] shows greater sensitivity, with growth declining 4.8 percentage points, compared with USDT’s 1.9-point reduction. This difference highlights USDC’s closer ties to U.S. users and institutions.
Source: AMBCrypto
