American Bank: Interest-Bearing Stablecoin Could Disrupt $6 Trillion in Bank Deposits

BlockBeats News, January 15th, Moynihan, CEO of Bank of America, warned that if the U.S. Congress does not restrict interest-bearing stablecoins, up to $60 trillion in deposits could move from banks, representing about 30% to 35% of total U.S. commercial bank deposits. Moynihan stated that stablecoins are structured like money market mutual funds, with reserves held in short-term instruments (such as U.S. Treasuries), rather than being used for bank loans as in traditional banking. In this model, funds are outside the traditional banking system, causing a contraction in the deposit base that banks rely on to support household and business lending.

This is also the most controversial issue in the "CLARITY Act" (Crypto Market Structure Act). The bill includes a provision that prohibits digital asset service providers from paying interest or returns to users solely for holding stablecoins. It is worth noting that the bill distinguishes between activity-based rewards, allowing rewards tied to staking, providing liquidity, or offering collateral, while prohibiting rewards for idle balances in an account.