Financial Stability

BofA CEO Warns Interest‑Paying Stablecoins Could Drain Bank Deposits

Bank of America CEO Brian Moynihan warned on Jan. 15, 2026 that interest‑bearing stablecoins could siphon off trillions of dollars from bank deposits, risking banks’ ability to lend. The comment raises fresh questions about funding, regulation and financial stability.

Kazakhstan Blocks Over 1,000 Illegal Crypto Trading Platforms in Crackdown

Kazakh financial regulators say they blocked access to more than 1,000 online platforms offering crypto exchange services over the past year. The move is part of a push to build a formal regulatory framework and grow the licensed crypto market.

Korean Exchanges Reject FSC Plan to Cap On-Exchange Crypto Holdings

South Korea’s Digital Asset Exchange Alliance (DAXA) has firmly rejected the Financial Services Commission’s proposal to limit how much crypto users can hold on local exchanges. The move escalates tensions between regulators aiming to curb risk and an industry warning of unintended consequences.

More than 60 Economists Urge EU to Adopt Digital Euro to Protect Monetary Sovereignty

An open letter from over 60 economists published on Jan. 12, 2026 urges EU lawmakers to implement an effective digital euro, warning that failure to act could cede control of Europe’s money to foreign or private payment systems. The signatories say a well‑designed CBDC is needed to preserve monetary sovereignty and the transmission of policy.

FSOC Drops Crypto From Financial Vulnerabilities List in 2025 Report

The Financial Stability Oversight Council removed digital assets from its list of financial stability vulnerabilities in its 2025 annual report, signaling a lower systemic risk assessment for crypto.

IMF Warns Stablecoin Boom Could Erode Central Bank Control

The IMF cautions that while stablecoins can widen access to financial services, their rapid growth risks weakening central banks’ monetary control and influence. Policymakers are urged to strengthen regulation and international coordination to protect monetary sovereignty.

Italy Begins In-Depth Review of Cryptocurrency Risks

Italy’s Economy Ministry has ordered a comprehensive review of protections against crypto-related risks, the Bank of Italy and other regulators said on Thursday. The move signals growing concern about consumer protection and financial stability as crypto activity increases.

China Launches Crackdown Targeting Stablecoins Amid Global Currency Concerns

Chinese authorities have opened a fresh crackdown on stablecoins, tightening rules and enforcement that hit issuers and cross‑border flows. Observers warn the moves could be about control or part of a broader push that heightens geopolitical currency tensions.

Fed’s Bowman Signals New Rules Targeting Banks and Stablecoins

Fed Governor Michelle Bowman said regulators are preparing new rules aimed at banks and stablecoins, flagging tighter oversight to address risks and regulatory gaps. The announcement points to forthcoming policy moves that could reshape how banks interact with stablecoin issuers.

South Africa’s Central Bank Warns of Rising Stablecoin Risks

South Africa’s Reserve Bank has warned that rising adoption of digital assets, particularly stablecoins, could threaten financial stability. Regulators may step up monitoring and consider tighter rules as risks around backing, liquidity and cross‑border flows grow.