Bank of America (BofA) is prepared to launch a U.S. dollar-pegged stablecoin if regulators provide legal clarity, CEO Brian Moynihan stated at the Economic Club of Washington, D.C. While hinting at the possibility of dollar-backed tokens linked to customer deposits, he did not share specific details.
Stablecoins like Tether (USDT) and USD Coin (USDC) remain a key regulatory focus. Several legislative proposals, including the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act of 2024, aim to establish a regulatory framework. Senator Bill Hagerty’s bill proposes state-level oversight for stablecoin issuers under $10 billion in market cap.
Federal Reserve Governor Christopher Waller supports bank-issued stablecoins, citing their efficiency in payments and cross-border transactions. With their ability to lower costs and enable near-instant settlements, stablecoins could revolutionize remittances and financial services. If BofA enters the market, it would represent a major shift in traditional banking’s adoption of digital assets.
Meanwhile, PayPal is also enhancing the adoption of its stablecoin, PYUSD, by integrating it into its payment ecosystem. The company plans to enable merchants to use PYUSD for vendor payments and incorporate it into its international payment system.
By leveraging PYUSD, PayPal aims to reduce currency conversion complexities and transaction delays in cross-border payments. According to executive Michelle Gill, many expected payments will involve U.S. merchants paying international vendors, with PYUSD providing a seamless and efficient alternative to traditional methods.
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