A recent paper from the Bank for International Settlements (BIS) has suggested that higher deposit rates at US banks could be a significant obstacle to the growth of stablecoins. The study found that a 1 basis point increase in deposit rates would lead to slower growth in stablecoin issuance. Specifically, the authors predict that this change would result in a 3% reduction in the ten-week growth rate of stablecoins. This growth rate would fall from 15% to 12%.
This article is Bitcoincryptos' summary and analysis of reporting originally published by CoinDesk. Read the full original report at the link above.
The study's findings have implications for the development of the stablecoin market, which has grown rapidly in recent years. Stablecoins are digital tokens designed to maintain a stable value relative to a fiat currency, and they are often used for a variety of financial applications, including trading and lending.