Bank of America CEO Warns $6T in Deposits Could Flow into Stablecoins
Bank of America CEO Brian Moynihan has raised alarms over the potential migration of up to $6 trillion in US bank deposits into stablecoins, a scenario that could reshape the financial landscape. The estimate, representing 30% to 35% of all commercial bank deposits, stems from Treasury Department studies and hinges on pending regulatory decisions.
The debate centers on yield-bearing stablecoins, which banks argue could accelerate deposit outflows by offering bank-like returns without equivalent oversight. Moynihan likened stablecoin models to money market funds, noting their reserves are often parked in short-term instruments like Treasurys rather than fueling economic lending.
As lawmakers race against a legislative deadline, the tension between traditional finance and digital assets intensifies. The outcome could determine whether stablecoins remain a niche product or become a systemic force in global finance.
