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 “Bank of America Coin” is only a matter of time, contingent on the passage of pending legislation.
“It’s pretty clear that there’s going to be a stablecoin, which is going to be fully dollar-backed,” said Moynihan, referencing the ongoing legislative discussions on Capitol Hill. “If they make that legal, we will go into that business.”
With President Donald Trump’s 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. “The question of what it’s useful for is going to be interesting,” he added.
The BofA CEO also shared that the firm allocates approximately $4 billion annually to new technology investments, while maintaining its systems requires an additional $8 to $9 billion each year. “So the impact is unbelievable,” 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 BofA’s digital services for their banking needs.
As the current administration pushes for broader support of the crypto industry, Moynihan offered a more nuanced perspective, distinguishing stablecoins from other digital assets like Bitcoin or blockchain-based innovations.
Moynihan likened stablecoins 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 has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
