NY Fed: Banks Holding Stablecoin Deposits Are Lending Less

As digital dollars move onto blockchains, what happens to the banks that still sit at the center of the financial system? That was the question at the center of a new paper published by economists at the Federal Reserve Bank of New York, titled “Stablecoin Disintermediation.” The paper’s authors, Michael Junho Lee and Donny Tou, found that stablecoins...