EconomyStablecoins may not drain banks of dollars but can still raise lending costs
Buying stablecoins can turn household deposits into large institutional deposits held by issuers. Banks may retain the same overall dollars but face less dependable and more expensive funding, with some costs potentially passed on to borrowers, according to analyses from the Bank for International Settlements and the Federal Reserve.
Stablecoins may not drain banks of dollars but can still raise lending costs
Economy