Bank of America CEO says ‘will partner with some stablecoin’ networks

In the company’s Q2 earnings call Q/A, CEO Moynihan said: “So focusing on stablecoins as a transactional device if it’s new payment rail and we have trillions of dollars we move for our clients every day, we believe that if they want to use stablecoins to move part of that money, they’ll move. So consider them having an account. And they can send out money in U. S. Dollars. They can also initiate transactions have it go into euros and it could have it go into stable coins and then transact in that system. So we feel both the industry and ourselves will have responses. We’ve a lot of work still trying to figure out how big or small it is because of some of the places are not big amounts of money movement. So you’d expect us all to move. You expect our company to move on that. In the end of the day, the debate will be how big an item this will be and how much more an effective payment stream it is. And there’s places like small balance transfer across border that you can see the case. You can see it with sort of smart contracts and money movement. You can see it in digital native apps in app payments and stuff. But we’ll be there just like we were there when we moved from checks to to Zelle. And you can see that when the industry puts its mind to it if you were talking to me six or seven maybe ten years, you’d say this thing called Venmo is coming on and you guys can be left behind and here we are Our Zelle payments exceed Venmo’s total volumes today. The industries or multiples. It’s just because we can move money efficiently and we have to be aware of the attack on the payment system and we’ll be there to defend… In the broad you need networks to make this all work. And we will partner with some of the stablecoin. We already have partnerships with some of them. And so it will be a complex array and hopefully not complex to the customer frankly.” Of note, in pre-market trading, shares of Circle (CRCL) – a network of stablecoin applications – are up 4%.