Not long ago, top Wall Street leaders were fierce critics of the cryptocurrency market. Jamie Dimon, CEO of JPMorgan Chase, likened Bitcoin to a “pet rock,” while Brian Moynihan of Bank of America described it as “an untraceable tool for money laundering,” and HSBC explicitly stated: “We are not interested in Bitcoin.”

According to the New York Times, today, the stance has changed significantly. In investor calls, public speeches, and meetings with regulators, major banks are promoting their plans to launch their own digital assets, including stablecoins – cryptocurrencies linked to the US dollar – and offering loans tied to these assets.

This shift comes amid political support from President Donald Trump, a staunch advocate for cryptocurrencies, and envy over Bitcoin's price surpassing $100,000 last year.

The rise of the cryptocurrency market supported by banks

Stablecoins function as digital debt securities, maintaining a stable value linked to the US dollar. Customers deposit their money with the bank in exchange for stablecoins, which can then be used for low-cost international payments or cross-border transfers.

Thanks to the recently passed bipartisan GENIUS Act, banks must invest stablecoin reserves in US Treasury bonds and other low-risk assets, retaining the resulting interest – but without paying any money to depositors.

Unlike traditional bank accounts, holdings of stablecoins are not subject to federal deposit insurance, meaning there is no government support in the event of failure.

Bank executives see stablecoins as a way to modernize payments and compete with private sector competitors like Circle, Walmart, and Amazon, who are exploring their own currencies. However, they acknowledge that this shift could reduce deposit rules, limiting the funds available for lending.

The Federal Reserve Bank of Kansas City recently warned of potential economic consequences if deposits move from traditional accounts to stablecoins.

Concerns of the banking sector and historical echoes

While some executives, like Tim Spence, CEO of Fifth Third, insist that checking accounts remain safe, others secretly acknowledge their discomfort with the rapid change. One bank lawyer said: “If the banking sector were completely candid, they would say they wish stablecoins had never been invented.”

Even JPMorgan studied the laws of “illegal banking transactions” in the 19th century, when state-chartered banks issued their own currencies – an era plagued by fraud and instability, ultimately ending with the issuance of the National Bank Note.