Bank Chief: Bank of America May Introduce Its Own Stable Cryptocurrency

Bank of America, which has generally been less involved in the cryptocurrency industry, is ready to introduce its own stablecoin backed by the U.S. dollar if legislation permits it, as stated by its CEO on Tuesday.

"If they legalize it, we will venture into that business," Bank of America's CEO Brian Moynihan said during an interview with David Rubenstein at the Economic Club of Washington, D.C. on Tuesday.

Moynihan expressed his belief that a stablecoin backed by the U.S. dollar will definitely emerge, as these digital assets function similarly to money market funds or bank accounts. This is contingent on Congress enacting legislation; lawmakers and White House Crypto and AI Czar David Sacks have proposed that legislation may be passed within President Donald Trump's first 100 days.

"It's quite evident that there will be a stablecoin, which will be fully backed by the dollar, [...] so you'll have a Bank of America coin and a U.S. Dollar deposit and we'll be able to transfer them back and forth because now it hasn't been lawful for us to do it but it's just like another foreign currency," he said.

In contrast to institutions like J.P. Morgan and Citigroup, Bank of America has been more cautious in its cryptocurrency participation. However, changing regulations might compel its involvement.

The Trump Administration has indicated that it will back any initiatives in the cryptocurrency realm by providing clearer regulatory standards, likely intensifying competition among Wall Street banks in the sector. Charles Schwab, another bank that had previously been hesitant, recently appointed a head of digital assets as it investigates prospects in the space.

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The stablecoin market has garnered support from both Democrats and Republicans, making the creation of laws for these types of digital assets simpler than for other areas in cryptocurrency. To expedite the process, a group of lawmakers pledged earlier this month that Congress would pass legislation on stablecoins within the first 100 days of Trump's tenure.

While Democrats have raised concerns about the use of stablecoins for unlawful activities, Republicans hold complete control of Congress, making it likely that it will pass a favorable approach to the digital asset, though any final bill will likely require some form of bipartisan support.

The sector is already a significant player in payments. Stablecoins facilitated over $33 trillion in transaction volume in the past year, surpassing Visa and Mastercard combined, according to data from Visa.

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