Williams reports banks say instant 24/7 payments and stablecoins could increase their demand for reserves.
“Respondents widely noted that movement toward instant 24/7 payments could increase their demand for reserves, and some also indicated that greater adoption of payment stablecoins could have similar implications.”
Williams says stablecoins have moved from experiments to actual market use as financial assets are tokenized.
“Digital ledger technology is advancing, allowing financial assets—both money and securities—to be converted into digital tokens such as stablecoins, which are now being used in markets and not just tested in experiments.”