Fed warns stablecoins may squeeze bank credit

Bank lending could drop $325bn if the stablecoin market scales to $900bn, Kansas City Fed analysis finds A a larger regulated stablecoin market would pull cash from bank deposits into T-bills, boosting Treasury demand while squeezing bank lending, according to new research from the Federal Reserve Bank of Kansas City Published on 8 August, the … Continue reading Fed warns stablecoins may squeeze bank credit