Bank of America CEO warns that interest bearing stablecoins may affect $6 trillion in deposits

On January 15th, Bank of America CEO Moynihan stated that if Congress does not restrict interest bearing stablecoins, up to $6 trillion in deposits could be transferred from banks, accounting for 30% -35% of total commercial bank deposits in the United States. Moynihan pointed out that the stable currency structure is similar to the money market mutual fund, and its reserves hold short-term instruments such as US treasury bond bonds instead of being used for bank loans, which may weaken the deposit base of banks supporting household and enterprise loans. The CLARITY Act proposes controversial provisions that prohibit digital asset service providers from paying interest on users holding stablecoins, while allowing rewards based on pledge, liquidity, or collateral.