Michaela
Bank of America (BofA) CEO Brian Moynihan has revealed that the banking giant is ready to introduce its own stablecoin once the U.S. establishes a clear regulatory framework for digital assets.
Speaking at The Economic Club of Washington, D.C. on Tuesday, Moynihan stated in an interview with businessman and philanthropist David Rubenstein that the launch of a βBank of America Coinβ is only a matter of time, contingent on the passage of pending legislation.
βItβs pretty clear that thereβs going to be a stablecoin, whiΡh is going to be fully dollar-backed,β said Moynihan, referencing the ongoing legislative discussions on Capitol Hill. βIf they make that legal, we will go into that business.β
With President Donald Trumpβs administration taking a pro-crypto stance, lawmakers are working to advance legislation aimed at regulating stablecoins.
Moynihan explained that, in practical terms, this could lead to BofA issuing its own stablecoin tied to a U.S. dollar deposit account. βThe question of what itβs useful for is going to be interesting,β he added.
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The BofA CEO also shared that the firm allΠΎcates approximately $4 billion annually to new technology investments, while maintaining its systems requires an additional $8 to $9 billion each year. βSo the impact is unbelievable,β he remarked.
Additionally, Moynihan noted that Bank of America was an early adopter of mobile banking, launching an iPhone app ahead of its competitors when banking apps were still uncommon. He emphasized the firm’s digital banking growth, stating that 40 million customers now rely on BofAβs digital services for their banking needs.
As the current administration pushes for broader support of the crypto industry, Moynihan offered a more nuanced perspeΡtive, distinguishing stablecoins from other digital assets like Bitcoin or blockchain-based innovations.
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Moynihan likened stΠ°blecoins to money market funds, emphasizing their asset-backed structure and lower volatility, while also noting their similarities to traditional bank accounts in terms of stability and functionality.
JP Morgan, Bank of America’s biggest competitor, has been active in the stablecoin market since 2020. Through its Onyx blockchain platform, the firm introduced JPM Coin, which is designed to facilitate cross-border transactions and streamline payments between financial institutions. This initiative positions JP Morgan as a key player in the evolving landscape of blockchain-based financial services.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
