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BIS Warns Higher Bank Deposit Rates Could Cut Stablecoin Growth
The Bank for International Settlements (BIS) warns that higher interest rates on bank deposits could slow the growth of stablecoins. A one-basis-point increase in deposit rates could reduce average stablecoin market capitalization growth from 15% to 12% over ten weeks, according to research by Rashad Ahmed and Iñaki Aldasoro. The study also found that Circle's USDC responded more strongly to changes in bank deposit rates than Tether's USDT.