TechFlow news — On January 15, according to The Block, Bank of America CEO Brian Moynihan warned during Wednesday's earnings call that if Congress does not restrict interest-bearing stablecoins, up to $6 trillion in deposits—approximately 30%-35% of total U.S. commercial bank deposits—could shift from the U.S. banking system into stablecoins.
Moynihan stated that stablecoins are structured similarly to money market mutual funds, holding short-term instruments such as U.S. Treasuries in their reserves rather than funding bank loans, which would erode the foundation of bank lending.
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