Bank of America CEO Predicts Stablecoin Launch if Legislation Passes

Bank of America, the second-largest U.S. bank, has expressed its intention to launch a stablecoin if the pending legislation on Capitol Hill is passed, according to CEO Brian Moynihan. Speaking at The Economic Club of Washington, D.C., Moynihan predicted that the bank would enter the stablecoin business once the legislation is made legal.

Moynihan described stablecoins as distinct from other cryptocurrencies like Bitcoin or blockchains generally, comparing them to money market funds and bank accounts. He also mentioned that the bank's would-be stablecoin, "Bank of America Coin," could have interesting use cases, particularly in payments.

Earlier this year, Moynihan had stated on CNBC's "Squawk Box" that the banking system would play a significant role in the transactional side of stablecoins if legislation is passed. This sentiment aligns with the bank's potential entry into the stablecoin market.

Lawmakers have been debating the regulatory framework for stablecoins for years. However, Senate Banking Committee Chairman Tim Scott (R-SC) recently vowed to pass a regulatory framework for stablecoins within the first 100 days of the new administration.

Payment firms like PayPal have already entered the stablecoin space without clear federal rules, debuting their PYUSD stablecoin in 2023 and aiming to have 20 million merchants using the product this year. Bank of America's largest competitor, JPMorgan, has also been dabbling in the stablecoin space since 2020, positioning "JPM Coin" as a tool for cross-border transactions and payments between financial institutions.