BofA CEO Warns Interest‑Paying Stablecoins Could Drain Bank Deposits
Bank of America CEO Brian Moynihan said on Jan. 15, 2026 that stablecoins offering interest could pull away trillions in deposits from traditional banks, potentially undermining those banks’ capacity to extend credit. His warning frames interest‑paying crypto products not just as a competitive sidewalk but as a structural threat to conventional deposit funding and the intermediation role banks play.
The observation matters because deposit outflows on a large scale would pressure bank balance sheets and could shrink lending to businesses and households, with knock‑on effects for the broader economy. Policymakers, regulators and market participants will likely watch issuance models and yields closely; for investors and consumers, the debate highlights trade‑offs between higher crypto yields and potential impacts on banking stability and credit availability.