Bank of America CEO Warns $6 Trillion Could Move to Stablecoins if Interest Is Allowed
Moynihan warns that interest-bearing stablecoins could drain trillions from U.S. bank deposits, impacting loan supply and increasing borrowing costs, according to Treasury research.
Fact Check
The assessment is based on a strong consensus across multiple, independent, and credible sources. A high-authority mainstream financial outlet (Yahoo Finance) and a reputable crypto-focused publication (The Block) both directly report that Bank of America CEO Brian Moynihan made this statement. The reports are highly consistent, all mentioning the CEO by name, the specific $6 trillion figure, and the condition of stablecoins being allowed to offer interest or yields. Several other sources with varying authority levels corroborate this information, and there are no contradictions in the evidence provided. The high quality and unanimity of the reporting make it extremely probable that the CEO did, in fact, make this statement.
Summary
Bank of America CEO Brian Moynihan cautioned that interest-bearing stablecoins could shift up to $6 trillion from U.S. bank deposits, citing Treasury research. Such an outflow, comparable to 30–35% of commercial deposits, could hinder bank lending capacity, especially to SMEs, and raise borrowing costs. He highlighted parallels with money market fund competition, where liquidity drainage affects traditional financial services.
Terms & Concepts
- Stablecoin: A digital currency pegged to a stable asset, such as the U.S. dollar, designed to minimize price volatility.
- Money Market Fund: An investment vehicle that offers short-term, low-risk returns, often competing with bank deposits for liquidity.