CEO of Bank of America: Stablecoin Growth Could Bring $6 Trillion Out of the Banking System!

Source: TokocryptoBlog Original Title: CEO Bank of America: Stablecoin Yields Could Make $6 million Dollars Exit the Banking System! Original Link: https://news.tokocrypto.com/ceo-bank-of-america-bunga-stablecoin-bisa-bikin-6-miliar-keluar-sistem-perbankan/

Background: Warnings from US Bank Executives

Bank of America CEO Brian Moynihan issued a warning during the Q4 2025 earnings call that if stablecoins are allowed to pay interest to holders, the US could see up to $6 trillion in bank deposits flowing out of the traditional banking system.

This figure is quite substantial, accounting for approximately 30-35% of total deposits in US commercial banks. If this occurs, the impacts would include banks losing access to cheap funding sources (retail deposits) and rising loan interest costs.

The Appeal of Stablecoin Yields

Moynihan explained that this forecast is based on research from the US Treasury Department. He pointed out that interest-paying stablecoins would be similar to money market funds, offering yields higher than regular bank savings accounts.

If stablecoins can offer around 4% returns, while banks provide lower interest, individuals and institutions would naturally prefer to shift their funds into stablecoins.

Banking Industry Concerns

US banking leaders, in a letter to the US Senate, pointed out that if stablecoins are allowed to pay yields, “billions of dollars of funds flowing out of bank loans will directly impact community banks, small businesses, farmers, students, and homebuyers.” They also emphasized that stablecoin issuers cannot replace the credit creation function of banks and do not offer FDIC insurance.

Potential impacts include:

• Banks losing access to cheap funding sources (retail deposits)
• Banks being forced to seek funds from more expensive channels
• Reduced bank lending capacity
• Overall loan interest rates potentially rising

Industry Counterarguments

However, many believe these are just excuses aimed at protecting the interests and profit margins of large banks. Critics point out that these big banks are fully capable of offering more competitive deposit rates in the face of competition.

US Stablecoin Regulation Controversy

Moynihan’s remarks come amid intense debate in the US Congress over the Crypto Market Structure Act. On January 9, 2026, Senator Tim Scott introduced a new draft that explicitly bans stablecoin issuers from paying interest or yields solely based on holding. However, rewards related to staking, liquidity provision, or other active uses are still permitted.

Large banks like Bank of America and banking lobbying groups strongly support this ban, hoping to prevent stablecoins from becoming direct competitors to deposits.

On the other hand, some crypto industry participants, such as compliant platforms, strongly oppose this draft. They believe that stablecoins capable of providing yields mean that interest can flow to US households. They argue this benefits ordinary people because they can earn higher returns than bank deposits.

Comparison of Bank Interest Rates

Although stablecoins are increasingly seen as a new threat by traditional banks, let’s compare average bank interest rates with stablecoin yields.

Traditional banks are generally divided into two categories based on size: large banks, which offer lower rates due to ample liquidity, and digital banks, which offer higher rates to attract customers.

The deposit interest rates at traditional large banks typically range from 2% to 3.5%, while digital banks can offer 5% to 8.75%.

Stablecoin users can earn yields through centralized exchanges or decentralized exchanges. The yield rates vary depending on the activity, such as lending, staking, or liquidity provision. According to DeFi data, yields for stablecoins like USDT range widely from 0.57% to 41.23%, averaging between 2-10%. During market booms, yields can rise sharply as many borrow stablecoins to buy Bitcoin.

Conclusion

Traditional banks must adapt to technological advances, including cryptocurrencies and stablecoins. If banks continue lobbying to restrict stablecoin yields without innovating, they risk becoming irrelevant in the era of digital currencies, especially as the adoption of stablecoins is rapidly expanding.