Pegged: What do stablecoin yield wars have to do with pass-through?
Plus, the BIS eyes stablecoin dollarisation effects.
Editorial Hello
I like to think I’m pretty switched on regarding matters monetary policy and financial. Turns out, not always so. For unknown reasons, I somehow completely missed that ‘interest rate passthrough’ operates very differently in the U.S. than it does in Europe.
I came to this unfortunate realisation while doing some deep-dive research into PayPal and Stripe. I’ll spare readers how that research connects for now, as it’s a long story. Suffice it to say, the factoid I uncovered totally blew my mind. It’s that even today, with Fed rates at 3.5-3.75 percent, the vast majority of GSIBs offer depositors approximately zero interest.
