💸 Bank of America: up to $6 trillion can go from banks to #Stablecoins …
The head of Bank of America Brian Moynihan said that the authorisation to pay interest on stablecoins could provoke an outflow of up to $6 trillion from the U.S. banking system - this is 30-35% of all deposits.
Why banks are against it: profitable stablecoins directly compete with deposits, their reserves go to government bonds instead of lending, and fewer deposits mean less loans or more expensive funding for the economy.
So far, the CLARITY bill proposes to ban passive returns on stablecoins, allowing rewards only for active actions (staking, liquidity, collateral, etc.).
