Main to remember
- Bank of America plans to issue a stablecoin once the regulatory clarity is available.
- The proposed stablecoin would be fully supported in dollars and would look like existing financial products.
Share this article
Bank of America is ready to launch its own stablecoin if the regulatory framework allows it, CEO Brian Moynihan said on Tuesday in an interview with David Rubenstein at the Washington Economic Club.
“It is quite clear that there will be a stable piece which will be a fully sustained dollar,” said Moynihan when asked if he thought that there would be a complete elimination of physical money in favor of an entirely digital economy.
“If they make this legal, we will enter this business,” said Moynihan. “You will have a Bank of America coin and an American deposit and we can make them go and come.”
“Because now it has not been legal for us to do so,” he added.
Moynihan has also described three distinct categories in the space of digital assets: Blockchain technology, Stablecoins and Bitcoin and other cryptographic assets. He focused on stablecoins, declaring that these assets would work similarly to existing financial products.
“It is no different from a money market fund with access to the check … is not different from a bank account,” he said.
Moynihan said that the vast majority of the monetary movement is already digital, in particular for significant transactions between central banks, such as metal transfers, ACH payments and other electronic methods.
Credit and debit cards further strengthen change to a digital economy, according to the CEO of Bofa. He noted that consumption expenditure is strongly digital, with Zelle, credit cards and other digital payment methods largely exceeding cash transactions.
Despite digital domination, the species remain “of critical importance,” said Moynihan. Although the use of species decreases, automatic ticket distributors and branches are still necessary for consumers and small businesses that still use money.
The bank currently manages a movement of substantial digital money, Moynihan noting that they “move three dollars of dollars today digitally”. He added that although physical currency remains important, 98% of the bills in the world are managed by the bank as a government service.
Regarding the logistics of physical currency, Moynihan explained that “a billion dollars of hundreds weighs a few tonnes” and “a million dollars of hundreds is a battery of 25 feet”, highlighting the practical advantages of digital alternatives.
The CEO of Bofa provides for a strong entry of the American bank in cryptographic payments with clear regulations
Last month, Moynihan said that American banks are ready to adopt cryptographic payments if regulatory executives are established, focusing on secure and non -anonymous transactions. He also mentioned that the bank already manages most of the transactions digitally.
“If the rules enter and do something with it with which you can actually do business, you will find that the banking system will be hard on the transactional side,” he noted.
Moynihan considers crypto as another potential payment method alongside traditional systems and has said that the bank has many blockchain patents.
The wider adoption of the crypto by banks has been hampered by regulatory uncertainties, which could change with the pro-scriptto position of the Trump administration.
Share this article
