Tokenized Deposits Could Cost Banks $700B: Dallas Fed Economists | CoinDesk Daily

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The Dallas Fed says tokenized deposits could drain $700 billion from bank lending. And the ECB insists its digital euro won't spy on you. This is CoinDesk Daily.
RealFi, a smarter stablecoin backed by real world assets. Join the testnet now at realfi.co. Two Dallas Fed economists estimate that tokenized deposits could strip about $700 billion from US banks capacity to fund long-term loans.
The figure assumes technology makes depositors just 10% more sensitive to interest rates. Banks could respond by paying to keep deposits or leaning on pricier term debt. The economists warn that would likely raise the cost of credit for consumers and businesses. Roughly 81,700 Bitcoin options contracts worth about $6.4 billion are set to expire Friday on Deribit. The put-to-call ratio sits at 0.83, pointing to bullish positioning in Bitcoin's run from 62,000 to 80,000 has pushed a large batch of call options into the money. With over half a billion dollars in notional sitting within 5% of the current price, Deribit's chief risk officer, Sean Fernando, says traders should expect heavier gamma hedging into the expiry. And the European Central Bank is pushing back on surveillance fears over its digital euro. Executive board member Piero Cipollone says the euro system would be structurally incapable of linking individuals to their transactions. Offline payments would work like cash, known only to the payer and payee.
Online, only banks could identify users and only for anti-money laundering checks. The digital euro is scheduled to roll out in 2029 Get more updates on coindesk.com. RealFi, a smarter stable coin backed by real world assets. Join the test net now at realfi.co.