A closer look at “BIS Economists: Banks Hold a Lever Over Stablecoin Adoption as USDC Proves Most Rate-Sensi”, exactly as the source publishes it. A new working paper from the Bank for International Settlements (BIS) suggests that U.S. banks may hold a key lever over stablecoin adoption. The economists found that when banks raise deposit rates, stablecoin growth tends to slow, with Circle’s USDC showing the strongest sensitivity. This relationship highlights how traditional banking incentives can directly influence the appeal of dollar-pegged digital assets.
The findings matter because stablecoins have become a critical bridge between crypto markets and the real economy, and their growth is often seen as a challenge to bank deposits. By adjusting rates, banks can potentially attract funds back from stablecoins, which offer no yield in many cases. The paper implies that monetary policy and competitive banking rates could shape the future scale of stablecoin usage, especially for yield-seeking users. The full version stays on the original page, which this listing opens directly.