Amid investor and financial sector interest in payment stablecoins, Bank of America Chairman and CEO Brian Moynihan said it was incumbent on large banks to build the infrastructure, working through industry utilities, that ensures payment products remain broadly accessible and interoperable. Early use cases for stablecoins include cross-border transactions, business payments and settlement over weekends when existing systems are closed.
Speaking at the American Bankers Association’s Annual Convention in Charlotte, where Bank of America is headquartered, Moynihan commented that until passage of the Genius Act earlier this year, “the legal status of the thing was up in the air,” adding that “we need the other piece — market structure [legislation] — to make it fully function.”
Moynihan emphasized moving carefully, noting concerns about deposit flight associated with stablecoins. “If it becomes a problem, it’s hard to put the genie back in the bottle.” Because the reserves backing stablecoins “can’t be used to support our economy” through bank lending, “if you sever that, that means the broader economy isn’t getting a push.”
Moynihan also discussed the ongoing government shutdown, which — given Bank of America’s scale — means that many of the federal employees affected are its clients. Moynihan described how the bank is waiving fees and late payment penalties for affected customers “so that they can make it through this trial and get back on their feet without having to worry about their day-to-day loan payments.”
