Bank of America (BofA) is prepared to introduce its own stablecoin

BofA is prepared to introduce its own stablecoin once regulations permit, CEO Brian Moynihan stated during an interview with David Rubenstein

Bank of America is planning to launch its own stablecoin once regulations permit, CEO Brian Moynihan has stated.

Speaking at the Economic Club of Washington, as part of a conversation with David Rubenstein, Moynihan said that a fully backed digital dollar will come, and when it does, BofA will participate.

The bank will then offer a token that can be seamlessly converted into and out of a traditional deposit account at the bank, similar to how existing products like money market funds with check-writing capabilities operate.

“It operates similarly to a bank account,” he said of stablecoins, which he described as a financial instrument that people can use to make payments.

Bank of America may soon offer BofA tokens pegged to US dollar deposit accounts.

If the law allows it, we will participate in that business.

Current restrictions prevent the bank from issuing its own digital asset.

Moynihan categorized the digital asset landscape into three segments: blockchain technology, stablecoins, and cryptocurrencies like Bitcoin.

His primary focus was on stablecoins, which he sees as a natural progression in the financial services sector.

During the discussion, Moynihan highlighted the majority of financial transactions are already digital, especially among institutions and central banks.

Large-scale transfers occur via electronic payment systems, including wire transfers and the Automated Clearing House (ACH) network.

On the consumer side, digital payments are expanding with platforms like Zelle and credit and debit cards being used more than cash.

However, he noted that cash remains essential, with branches and ATMs serving businesses and individuals who still need physical currency.

Bank of America handles a massive volume of digital transactions daily.

“We process $3 trillion in digital payments today,” he said, showcasing the scale of the bank’s financial operations.

He also discussed the logistical challenges associated with handling physical currency.

A billion dollars in $100 bills, he noted, weighs several tons, while a million dollars in the same denomination would form a stack approximately 25 feet high.

These practical considerations further highlight the shift towards digital alternatives in financial transactions, which stablecoins and similar initiatives are aiming to facilitate.

The post Bank of America to Launch Stablecoin When Regulations Permit, CEO Says appeared first on iHaventGotA clue.