The authors suggested regulators evaluate requiring stablecoin issuers to hold part of their reserves as bank deposits, noting it could support bank funding but concentrate uninsured deposits in few banks.

From the articleBanks Hold a Lever Over Stablecoin Adoption, BIS Economists Say - DecryptAlso in Stablecoin Growth Cooled as Deposit Rates Rose, With USDC Most Exposed, Working Paper Says - Unchained, A 1-basis-point deposit rate rise cuts stablecoin growth from 15% to 12%, BIS paper finds