Bank of America CEO Brian Moynihan says the bank is prepared to introduce its own USD-pegged stablecoin if federal legislation allows it.

Speaking at The Economic Club of Washington, D.C., he stated that regulatory clarity would determine the bank’s entry into the stablecoin market.

Bank of America CEO Brian Moynihan has said the bank is ready to introduce its own USD-pegged stablecoin if federal legislation permits it.

Speaking at The Economic Club of Washington, D.C., he said that the bank’s entry into the stablecoin market will depend on regulatory clarity.

“It’s pretty clear there’s going to be a #stablecoin, which is going to be a fully dollar-backed… it’s no different than a #bank account,” Moynihan said.

“They’re applying for approval now. Once the legislation passes, you’ll have a stablecoin in the U.S.,” he added.

Stablecoins’ stability is similar to money market funds and traditional banking functionality as they are key parts of transactional activity, according to Moynihan. He noted that stablecoins currently dominate market use but their mainstream adoption by banks will require a well-defined regulatory system.

“You’ll have a stablecoin when the legislation passes, probably in the first 100 days of the new administration, as the Senate Banking Committee chair, Tim Scott, plans to work on advancing stablecoin legislation. After that approval, you’ll have Bank of America applying to make a stablecoin,” Moynihan said.

The U.S. has seen increasing discussion around regulatory control of stablecoins.

PayPal became the latest payment firm to join the stablecoin market with the launch of PYUSD in 2023. Traditional banks see potential in stablecoins, with the current market exceeding $232 billion. Additionally, JPMorgan Chase and other financial institutions began using blockchain technology for payment operations in 2020.

Bank of America is making significant investments in digital technology and tools. Moynihan disclosed that Bank of America allocates $4 billion annually for innovative endeavors along with $9 billion spent yearly to maintain its technological infrastructure. Digital transformation is the bank’s primary focus as customers now use digital and mobile channels for their interactions, amounting to 90%.

Despite having nearly 3,700 branches nationwide, Bank of America is focused on advancing its digital banking initiatives. According to Moynihan, estate management and financial planning require human interaction through in-person banking as technology doesn’t fully address all financial challenges.