BIS paper finds banks could slow stablecoin growth by raising rates

A Bank for International Settlements paper argues that higher bank interest rates could slow stablecoin growth by making traditional deposits more attractive relative to stablecoin holdings. The research frames stablecoins as competing with bank deposits, with implications for monetary policy transmission, regulation, and bank-versus-digital-currency competition. This is academic analysis rather than a market-moving event, though it adds to the policy debate over stablecoin oversight that traders monitoring regulatory risk should note.