Bank of America CEO: We'll Launch Dollar-Backed Stablecoin if U.S. Lawmakers Approve

Bank of America CEO Brian Moynihan has revealed that the bank is likely to launch its own stablecoin, a dollar-backed digital asset, if U.S. lawmakers approve legislation allowing it. In an interview with David Rubenstein at the Economic Club of Washington, D.C., Moynihan stated, "If they make that legal, we will go into that business."

Moynihan believes that a U.S. dollar-backed stablecoin is inevitable, comparing it to money market funds or bank accounts. He expects Congress to pass legislation within President Donald Trump's first 100 days, which would pave the way for such a stablecoin. "It’s pretty clear there’s going to be a stablecoin, which is going to be fully dollar-backed, [...] so you’ll have a Bank of America coin and a U.S. Dollar deposit and we’ll be able to move them back and forth," he said.

Bank of America has historically been cautious in its involvement with cryptocurrencies, but shifting regulations may prompt the bank to enter the sector. The Trump Administration has expressed support for the crypto space, likely increasing competition among Wall Street banks. Charles Schwab, another bank that had previously held back, recently hired a head of digital assets as it explores opportunities in the space.

The stablecoin economy has received bipartisan support, making the establishment of laws for these digital assets more likely than for other areas in crypto. A group of lawmakers has promised to pass legislation on stablecoins within the first 100 days of Trump's presidency. While Democrats have expressed concerns about illicit activities, Republicans' control of Congress suggests a friendly approach to stablecoins, though any final bill will likely need bipartisan support.

The stablecoin sector is already a significant force in payments, facilitating over $33 trillion in transaction volume over the past year, outpacing Visa and Mastercard combined, according to data from Visa.