US Banking System: Stablecoin Threat Could Shift $6 Trillion to Crypto

In recent days, ongoing discussions about the banking system in the U.S. have presented worrying developments for cryptocurrency investors. If interest-bearing stablecoins are accepted, Bank of America CEO Brian Moynihan claimed that approximately $6 trillion of bank deposits could shift to cryptocurrencies.

Moynihan presented this striking scenario during a balance sheet meeting he held with investors on Wednesday, based on the work of the U.S. Treasury Department. If Congress does not impose restrictions on interest-paying stablecoins, a significant amount equivalent to 30% to 35% of total commercial deposits in the banking system could exit. This situation could affect banks' lending capabilities, leading to widespread fluctuations in financial markets.

Moynihan emphasized that stablecoin structures operate much like money market funds, which typically hold short-term instruments. He warned that the outflow of deposits from the system could prompt banks to lend less or seek costlier funding. This could also put pressure on individual and commercial loans.

However, these discussions are not limited to the banking system but also deeply affect the cryptocurrency sector. A cryptocurrency bill published by Senate Banking Committee Chairman Tim Scott on January 9 is at the center of the discussions. It is claimed that this bill prohibits stablecoin holders from receiving interest while leaving the door open for activities like staking and liquidity provision.

In the crypto world, Tesla CEO Brian Armstrong noted that the current bill would end stablecoin rewards, while Galaxy Research warns that the regulation could elevate financial oversight powers to historically high levels. In light of all these developments, the voting process in the Senate is currently postponed, and this delay makes the question of how the balance between the banking system and the crypto ecosystem will evolve more pronounced.