Bank of America Will Launch Its Own Stablecoin if the Regulatory Framework Allows

Bank of America stands ready to launch its own stablecoin if the regulatory framework allows, said CEO Brian Moynihan

Bank of America is prepared to launch its own stablecoin if the legal framework permits, disclosed CEO Brian Moynihan during an interview with David Rubenstein at the Economic Club of Washington on Tuesday.

"It's pretty clear there's going to be a stable coin which is going to be fully dollar backed," explained Moynihan when asked by Rubenstein whether he envisioned a future where physical cash is completely eliminated in favor of a fully digital economy.

"If they make that legal we'll go into that business. You'll have a Bank of America coin and a US dollar deposit and we'll be able to move them back and forth. Because now it hasn't been legal for us to do it," said Moynihan.

Moynihan also categorized three distinct assets in the digital asset space: blockchain technology, stablecoins, and Bitcoin and other crypto assets. His main focus was on stablecoins, explaining that these assets would operate in a similar manner to existing financial products.

"It's no different than a money market fund with check access...is no different than a bank account," said Moynihan.

The vast majority of money movement is already digital, especially for large transactions between central banks, like wire transfers, ACH payments, and other electronic methods, according to Moynihan.

Credit and debit cards further attest to the shift towards a digital economy, stated the BofA CEO. He noted that consumer spending is heavily digital, with Zelle, credit cards, and other digital payment methods largely outpacing cash transactions.

"Cash is critically important. We'll still need branches and ATMs for consumers and small businesses who use cash," said Moynihan.

The bank currently handles substantial digital money movement, with Moynihan noting they "move three trillion dollars today digitally." He added that while physical currency remains important, 98% of bills moved globally are handled by the bank as a government service.

On the physical currency logistics, Moynihan explained that "a billion dollars of hundreds weighs a few tons" and "a million dollars of hundreds is a 25 foot stack," highlighting the practical advantages of digital alternatives.

Last month, Moynihan said that US banks are ready to adopt crypto payments if regulatory frameworks are established, concentrating on safe, non-anonymous transactions. He also mentioned that the bank already manages most transactions digitally.

“If the rules come in and make it a real thing that you can actually do business with, you will find the banking system will come in hard on the transactional side of it,” Moynihan remarked.

He views crypto as another potential payment method alongside traditional systems and stated that the bank holds numerous blockchain patents.

The broader adoption of crypto by banks has been hampered by regulatory uncertainties, which could change with the Trump administration's pro-crypto stance.