Dallas Fed economists said faster, programmable deposits could make bank funding less stable, potentially pushing lenders toward more expensive funding. Tokenized deposits could make bank funding less stable and raise credit costs for US households and businesses, according to an analysis by two economists at the Federal Reserve Bank of Dallas. Economists Rosie Levy and Srini Ramaswamy said instant settlement could allow depositors seeking higher yields to switch banks more quickly. They said programmable deposit tokens and agentic artificial intelligence could automate the transfers, shortening the time that deposits remain at individual banks and making them more sensitive to interest rates. The economists estimated that if deposits became 10% more sensitive to interest rates, banks’ capacity to hold long-term loans and other assets could fall by about $700 billion. In a separate scenario, deposits remaining at banks for 10% less time could reduce that capacity by about $580 billion. Both figures are expre...
A new Bitcoin Improvement Proposal for the SHRINCS signature scheme has just been published to upgrade Bitcoin to quantum secure. Here’s everything you need to know. Blockstream co-founder and CEO Adam Back has a reputation as a quantum computer skeptic who believes the technology is so immature the threat won’t materialize for decades. Which makes it all the more fascinating that his company is one of the leaders in researching practical solutions to the issue. Back told Cointelegraph earlier this year “the safe thing” is to prepare for the threat well in advance. Blockstream has already proven its experimental post-quantum signature scheme called SHRINCS works in production on its Liquid sidechain and a Bitcoin Improvement Proposal for SHRINCS was published earlier today. Blockstream Research’s Jonas Nick called it “the first concrete proposal for a post-quantum signature scheme designed specifically for Bitcoin.” But he added that “SHRINCS is not intended to be Bitcoin’s ‘final’ signature scheme, and it is...