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Tokenization Threatens Deposit Stability, Dallas Fed Researchers Warn

Research from the Federal Reserve Bank of Dallas warns that the rapid adoption of tokenized deposits and instant 24/7 blockchain transfers could destabilize bank liquidity and shrink long-term lending capacity. Threats to Long-Term Lending Capacity The rapid adoption of deposit tokenization and instant settlement technologies could fundamentally alter the traditional banking model, potentially curbing banks’…

Federal Reserve Bank of Dallas in Dallas Texas USAResearch from the Federal Reserve Bank of Dallas warns that the rapid adoption of tokenized deposits and instant 24/7 blockchain transfers could destabilize bank liquidity and shrink long-term lending capacity. Threats to Long-Term Lending Capacity The rapid adoption of deposit tokenization and instant settlement technologies could fundamentally alter the traditional banking model, potentially curbing banks’ […]

Source: https://news.bitcoin.com/finance/tokenization-threatens-deposit-stability-dallas-fed-researchers-warn/