crypto
BIS: Bank Rate Hikes Reduce Stablecoin Growth by 3 Points
Research from the Bank for International Settlements (BIS) indicates that a 1-basis-point rise in bank deposit rates is linked to 3 percentage points less stablecoin growth over 10 weeks.
New research from the Bank for International Settlements (BIS) suggests a notable impact of traditional bank deposit rates on stablecoin growth . The study found that a 1-basis-point increase in bank deposit rates is associated with a 3 percentage point reduction in stablecoin growth over a 10-week period, according to Crypto.news.
The BIS research specifically highlighted that USDC, a prominent stablecoin, was more significantly affected by these rate changes. This finding indicates a potential sensitivity of stablecoin adoption and expansion to shifts in conventional financial incentives.
Stablecoins are cryptocurrencies designed to maintain a stable value relative to a specified asset, often a fiat currency like the US dollar. They aim to combine the benefits of cryptocurrencies, such as fast transactions and global reach, with the stability of traditional currencies.
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