Banks Hold a Lever Over Stablecoin Adoption, BIS Economists Say

Crypto Insight Summary: A Bank for International Settlements working paper found that stablecoin growth slows when U.S. banks raise deposit rates, with Circle’s USDC most sensitive. Crypto Insight Analysis: Direction: Bearish USDC / Neutral BTC / Neutral ETH Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Higher bank deposit rates reduce stablecoin demand, particularly impacting USDC's growth.