Bank of America Considers Issuing Stablecoins

Fortune magazine has published an interview with the chief executive officer of the financial services giant Bank of America, stating that BoA may soon begin issuing stablecoins for its account holders.

US Likely to Legalize Stablecoins

Bank of America’s CEO, Brian Moynihan, believes that the US will eventually approve stablecoins as legal and reliable assets. He referred to them as digital assets akin to Bitcoin, comparing stablecoins to money market funds with check access or bank accounts.

If stablecoins are legalized in the US, Bank of America will enter this sphere, with Moynihan stating, “If they make that legal, we will go into that business.” He noted that the crypto-friendly presidential administration and lawmakers are expected to push for regulatory legislation on stablecoins.

BoA Eyes Issuing Stablecoins

Upon fulfillment of this condition, Moynihan indicated that the Bank of America would offer its customers BofA coins linked to their US dollar deposit accounts.

The bank invests $4 billion annually in new technology, and Moynihan estimated that running a stablecoin system would cost about $8 to $9 billion per year, with an “unbelievable” impact expected from this integration. The CEO highlighted Bank of America’s technological advancements, mentioning the early introduction of a mobile banking app for iPhone before other banking giants, at a time when app usage was still uncommon and many preferred websites.