27-2-2025 – Bank of America stands ready to introduce its own stablecoin should the regulatory environment permit, Chief Executive Brian Moynihan revealed during a conversation with David Rubenstein at the Economic Club of Washington.
“It’s quite evident there will be a stable coin that’s fully backed by the dollar,” Moynihan remarked when questioned about the potential shift towards a completely digital economy replacing physical currency.
“Should they make that lawful, we’ll enter that market,” he continued. “You’ll have a Bank of America coin and a US dollar deposit with the ability to transfer between them seamlessly.”
The chief executive clarified that current legal restrictions have prevented the banking giant from venturing into this territory previously.
During the discussion, Moynihan categorised the digital asset landscape into three distinct segments: blockchain technology, stablecoins, and cryptocurrencies like Bitcoin. He emphasised stablecoins particularly, drawing parallels with existing financial instruments.
“It fundamentally operates like a money market fund with cheque access… essentially equivalent to a bank account,” he explained.
The vast majority of monetary transactions already occur digitally, particularly substantial transfers between central banks through wire transfers, ACH payments and other electronic channels, according to Moynihan. Consumer spending habits further reflect this digital transformation, with payment methods such as Zelle and credit cards significantly outnumbering cash transactions.
Despite handling approximately “three trillion dollars digitally” today, Moynihan maintained that physical currency remains “critically important” despite its declining usage. He noted that ATMs and physical branches continue to serve essential functions for both consumers and small enterprises who rely on cash transactions.
Highlighting the practical advantages of digital alternatives, Moynihan offered striking comparisons: “A billion dollars in hundred-dollar notes weighs several tonnes” and “a million dollars in hundreds creates a stack 25 feet high.”
Last month, the CEO expressed confidence that American banks would eagerly embrace cryptocurrency payments once appropriate regulatory frameworks are established. He emphasised the importance of secure, identifiable transactions and revealed that Bank of America possesses numerous blockchain patents.
The banking sector’s broader adoption of cryptocurrency has been hampered by regulatory uncertainties—a situation that might evolve under the Trump administration’s reportedly more favourable stance towards digital assets.