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BIS Working Paper No. 1382 analyzes weekly U.S. data from 2019 to January 2025 June and finds that higher deposit rates are associated with slower stablecoin market-capitalization growth. The paper considers reserve-backed stablecoins partial substitutes for bank deposits.
Apollo Chief Economist Torsten Slok warned that AI if agents widely pursue higher deposit yields automatically, they could accelerate the outflow of funds from low-interest demand deposit accounts.
According to BlockBeats, Apollo Chief Economist Torsten Slok said that AI if agents automatically move idle household cash to high-yield accounts, they could weaken banks’ low-cost deposit base.