Deep Tide TechFlow News, January 15 — According to The Block, U.S. Bank CEO Brian Moynihan warned during Wednesday's earnings call that if Congress does not restrict interest-paying 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 to stablecoins.
Moynihan stated that stablecoins are similar to money market mutual funds, with reserves mainly held in U.S. Treasuries and other short-term instruments, rather than used for bank loans, which could lead to a reduction in the banking loan base.
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Deep Tide TechFlow News, January 15 — According to The Block, U.S. Bank CEO Brian Moynihan warned during Wednesday's earnings call that if Congress does not restrict interest-paying 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 to stablecoins.
Moynihan stated that stablecoins are similar to money market mutual funds, with reserves mainly held in U.S. Treasuries and other short-term instruments, rather than used for bank loans, which could lead to a reduction in the banking loan base.