The CEO of Bank of America, Brian Moynihan, has declared that the bank would like to enter the stablecoin business if the U.S. regulators are able to set clear regulations.
He pointed out that the bank’s decision is mainly influenced by regulatory preparedness, during the talk, and he also talked about the advantages of stablecoins in international payments and retail settlements.
Moynihan was of the opinion that the use of stablecoins would enable transfer speed to be more than ten times faster, with the costs being cut down to a fraction of current prices, especially on international money transfers. They could also provide liquidity in the new markets and improve the overall financial transaction efficiency for the consumers and institutions alike.
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The possible involvement of Bank of America is a sign that stablecoins gradually become more significant in the banking industry. Nevertheless, the action will be subject to legislative approval and the readiness of regulators and the market.
“Pointing the finger at the banks… the problem before was it wasn’t clear we were allowed to do it under the banking regulations.
Brian Moynihan
Bank of America Sees Stablecoins in the Future Despite Regulatory Uncertainty
The banks and regulators are alert and closely observing the situation as Bank of America expresses interest in stablecoins, with the CEO Brian Moynihan stating that “collaboration is key.” His comments suggest the possibility of partnerships with the players in the market, indicating that the solutions for the institutions might become available when the U.S. regulations are there.
On the other hand, USD Coin (USDC) is still serving as a reference point for stability in the market. According to CoinMarketCap, its market cap is at $67.76 billion with the price constant at $1.00, and in the trading apps, $17.93 billion has been the recent volume. USDC has been stable over the past three months which shows its high liquidity and the fact that it is still the leading stablecoin.
The market experts predict that if the big banks like Bank of America
