Stablecoin growth may decrease loan supply in US – Fed study
Bank lending could be reduced by $325 billion over next three years, author claims
Dollar stablecoins could increase the demand for US Treasuries only by decreasing demand for other assets and ultimately reducing the supply of credit, argues a researcher with the Federal Reserve Bank of Kansas City.
In an article on August 8, Stefan Jacewitz, an assistant vice-president with bank, points to the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act – commonly known as the Genius Act – as a framework that could increase demand for Treasuries. He says that
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