Summary
- Ronit Ghose, Head of Digital Finance at Citigroup, stated that paying interest to stablecoin holders could result in bank deposit outflows.
- He mentioned that this could be a situation similar to the Money Market Fund (MMF) boom of the 1980s.
- As a result, the bank's funding costs may increase and loan interest rates for businesses and households may rise.
On the 25th (local time), cryptocurrency-focused media outlet Cointelegraph reported that Ronit Ghose, Head of Digital Finance at Citigroup, warned, "If stablecoin holders are paid interest, this could trigger a phenomenon of bank deposit outflows, similar to the boom in Money Market Funds (MMF) seen in the 1980s."
He added, "If such a situation occurs, banks' funding costs may rise, and as a result, interest rates on corporate and household loans may increase."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
