Unlike previous market cycles, where banks have predominantly avoided stablecoins and most other cryptocurrency assets, the sentiment is now towards broader acceptance.
As key regulations continue to be reviewed, the adoption landscape is evolving.
New Chapters Being Written
The news of the plan was shared yesterday by Reuters, with the Bank of America (BOA) joining the ranks of various institutional bodies that have endorsed the stablecoin plan under President Trump’s crypto-friendly legislation.
Brian Moynihan, the CEO and President of BOA, noted that “investors can expect the lender to move forward with it,” but did not disclose any information as to when this can be expected.
Further speaking to analysts during a post-earnings call, the CEO’s approach appears to be cautious and calculated, as they are currently exploring customer demand, which is presently low.
The groundwork will likely begin “at the appropriate time” and “in partnership with other players,” with Moynihan comparing current stablecoin adoption levels of the industry with those of payment platforms like Zelle and Venmo.
“We’ve done a lot of work,” said Moynihan, hinting that this may have been in development for a while now, but with “banks still awaiting legal clarity,” the progress has been slower than some investors would have liked.
The wait will likely not be very long, as the trio of anticipated legislation bills—CLARITY, GENIUS, and Anti-CBDC — were advanced to the House floor for debate and consideration after a 9-hour stall of the vote.
After speaking with the President late on Wednesday, the House Speaker told reporters:
“I’m pleased that we’ll be able to get this done. The president is as well. I just spoke with him, and this is a big priority for him, and it was for us.”
A Change of Heart
The widespread adoption and ongoing plans for stablecoins by central US banks are in stark contrast to how they were viewed not that long ago.
For example, when the BOA’s lead was asked if they planned to incorporate cryptocurrency in their services during a past World Economic Forum, the answer was a straightforward “no.”
Previously skeptical as well, the third-largest bank in the United States, Citigroup, is also considering issuing its own stablecoin.
Vocal bitcoin critic – JPMorgan CEO Jamie Dimon, announced that the entity will also be entering the space, but without sharing any further details.
