A study published by the Bank for International Settlements (BIS) reveals that an increase of just one basis point in the interest rates offered by traditional financial institutions to savers slows the growth of the stablecoin market. This small adjustment of 0,01 percentage points reduces the ten-week growth rate of these digital assets from 15% to 12%.
The technical report examines in detail the monetary interaction between bank savings and circulating liquidity in the digital economy. The research demonstrates that interest rate fixing remains a crucial tool for retaining liquidity within the traditional financial system in the face of tokenized alternatives.
The quantitative impact of interest rates on crypto market capitalization
The research conducted by analysts Rashad Ahmed and Iñaki Aldasoro analyzed comprehensive weekly data collected between January 2019 and June 2025. To rigorously measure the direct relationship, the authors adjusted for external variables such as the stock price of Bitcoin, US Treasury interest rates and general financial conditions. The result shows that A 1 basis point increase in bank rates predicted slower gains for stablecoins, reducing their ten-week growth from 15% to 12%..
Under the economists' preferred estimate, which incorporates dynamic adjustments for the sector's reaction to the advancement of these instruments, the response is up to three times greater. In this analytical scenario, the rate of expansion even slows to around 6%. However, the authors clarify that the monetary flow slows measurably but does not experience an absolute reversal.
Differential behavior between USDC and USDT
The BIS study underscores that this substitution effect does not operate uniformly across all issuers. Sensitivity to interest rates offered to savers was particularly pronounced in USD Coin (USDC) compared to Tether (USDT). The analysis attributes this divergence to the user base of each asset and USDC's direct link to holders and institutions operating within US financial frameworks.
While USDT maintains intensive global circulation in emerging markets and decentralized trading environments, stablecoins with deeper corporate regulatory ties compete directly with checking accounts and deposits at commercial banks. You can delve deeper into these structural differences by consulting the educational modules of Bit2Me Academy, where the architecture of the main backup reserves is analyzed.
Concerns in the banking sector and concentration of liabilities
The ability of dollar-linked currencies to channel corporate balances has raised alarms among senior financial executives. Various industry analyses warn that trillions of dollars in deposits could gradually migrate to blockchain-based alternatives if they offer better incentives, ultimately limiting the capacity to grant commercial and mortgage loans in the productive economy.
A report from Federal Reserve staff noted that capital flowing in through private issuers typically returns to bank balance sheets in the form of operating reserve accounts. However, this process alters the nature of the funds: it replaces millions of deposit-insured retail depositors with large volumes of uninsured wholesale balances. This dynamic compels institutions to maintain tighter liquidity buffers to manage the risk of immediate withdrawals.
The regulatory context and the MiCA framework in Europe
The regulatory environment plays a crucial role in how stablecoins interact with bank money. In the European Union, the MiCA Regulation establishes strict guidelines for asset-linked tokens and electronic money tokens. This regulation requires issuers to guarantee segregated liquid reserves and prohibits direct interest payments for simply holding the token, thus protecting the stability of the common monetary system.
Through registered and compliant platforms like Bit2Me, users who choose to build their own wallets can trade cryptocurrencies that are audited and backed by EU regulations. While in the United States the debate revolves around how banks can adjust their profit margins to compete, Europe is moving towards operational clarity by clearly defining the functions of digital currency.
FAQ
What exactly did the BIS report on stablecoins uncover?
The Bank for International Settlements found that a weekly increase of one basis point (0,01 percentage points) in bank rates reduces the average growth rate of stablecoins over ten weeks, lowering it from an estimated expansion rate of 15% to 12% in capitalization.
Why does USDC react more to bank rates than USDT?
USDC has a holder base more closely connected to corporate and institutional users in the United States. When traditional banks offer greater savings incentives, these users find a significant opportunity cost in returning their capital to conventional, regulated accounts.
How does the MiCA Regulation affect this scenario for European users?
MiCA requires issuers of electronic money tokens to maintain transparent reserves and prohibits the accrual of automated passive interest on holding stablecoins, ensuring that these assets serve as a secure transactional medium and preventing unregulated distortions to deposits in the financial system.
The Bank for International Settlements report confirms that traditional pricing tools for bank liabilities continue to hinder the growth of digital assets pegged to fiat currencies. Although stablecoins have consolidated their presence in the contemporary financial ecosystem, their rate of adoption is directly related to the remuneration policies applied by traditional institutions.
As adoption progresses in supervised frameworks and MiCA regulation is consolidated in Europe, the interaction between institutional balance sheets and tokenized reserves will define the balance between established banking and crypto infrastructure.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
Generative artificial intelligence tools were used to create this article.
