According to ShibDaily, Bank of America (BofA) CEO Brian Moynihan has announced the bank's readiness to launch its own stablecoin, contingent upon the establishment of a clear regulatory framework for digital assets in the United States. Speaking at The Economic Club of Washington, D.C., Moynihan highlighted that the introduction of a 'Bank of America Coin' is imminent, pending the passage of relevant legislation. He emphasized the likelihood of a fully dollar-backed stablecoin emerging from ongoing legislative discussions on Capitol Hill. Moynihan stated, "If they make that legal, we will go into that business."
With U.S. President Donald Trump's administration showing support for the cryptocurrency sector, lawmakers are actively working on legislation to regulate stablecoins. Moynihan explained that this regulatory clarity could enable BofA to issue its own stablecoin linked to a U.S. dollar deposit account. He also discussed the potential uses of such a stablecoin, noting its similarities to money market funds due to its asset-backed nature and lower volatility compared to other digital assets like Bitcoin. Moynihan further distinguished stablecoins from other blockchain-based innovations, highlighting their stability and functionality akin to traditional bank accounts.
Bank of America has been a pioneer in digital banking, having launched an iPhone app ahead of its competitors when mobile banking was still in its infancy. Moynihan revealed that the bank invests approximately $4 billion annually in new technology, with an additional $8 to $9 billion allocated for system maintenance. This significant investment underscores the bank's commitment to digital growth, with 40 million customers currently utilizing BofA's digital services for their banking needs.
In contrast, JP Morgan, a major competitor of Bank of America, has been active in the stablecoin market since 2020. Through its Onyx blockchain platform, JP Morgan introduced the JPM Coin, designed to facilitate cross-border transactions and streamline payments between financial institutions. This initiative positions JP Morgan as a significant player in the evolving landscape of blockchain-based financial services. The developments in the stablecoin sector reflect the broader push by the current administration to support the crypto industry, with Bank of America poised to enter the market once regulatory conditions are favorable.