The latest research from the European Central Bank shows that the increase in stablecoin usage is weakening the effect of monetary policy on bank lending, resulting in a decline in bank deposits and loans to businesses. This causes banks to become more dependent on market financing, which incurs higher costs. The magnitude of the impact of stablecoins is influenced by their adoption scale and regulations, particularly in the case of stablecoins denominated in foreign currencies.#CelebratingNewYearOnGateSquare
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The latest research from the European Central Bank shows that the increase in stablecoin usage is weakening the effect of monetary policy on bank lending, resulting in a decline in bank deposits and loans to businesses. This causes banks to become more dependent on market financing, which incurs higher costs. The magnitude of the impact of stablecoins is influenced by their adoption scale and regulations, particularly in the case of stablecoins denominated in foreign currencies.#CelebratingNewYearOnGateSquare