Decorate deposits could cause US bank loans to fall by US$ 58 billion

The study notes that monetized deposits could lead to a $580 billion reduction in United States bank loans. That figure was sufficient to reshape the way in which the economy was financed by banks, and the encryption industry was building the relevant infrastructure without taking its consequences fully into account. Studies have shown that the rapid flow of monetized deposits may affect the stability of bank deposits and thus the ability to lend. The paper simulated three adoption scenarios of monetized deposits in the United States banking system and found that under a medium adoption scenario, loan capacity would be reduced by $580 billion, affecting the availability of credit for small businesses and first-time buyers。