Banks could slow stablecoin growth by paying savers more, BIS paper finds

A BIS paper indicates that banks could potentially slow the growth of stablecoins by increasing interest rates for savers. This strategic move by banks to pay higher rates could curb the expansion of digital currencies, which in turn impacts competition, regulation, and overall monetary policy. The findings suggest that traditional banking institutions can utilize rate adjustments as a mechanism to maintain their position against the rising adoption and influence of stablecoin assets in the market.