The following article appeared in the December 8, 2025, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
Post-GENIUS Act passage, it’s still TBD whether stablecoins will shake up the U.S. banking system
The federal government has, for the first time, established a legal and regulatory framework for a type of cryptocurrency known as stablecoin — but there’s still plenty of work to be done before that method of payment becomes widely adopted, a leading Bank of America researcher said in a Charlotte speech last week.
Stablecoins are backed by a reserve of assets, like the U.S. dollar. Akin to their name, they’re widely viewed as more stable than traditional cryptocurrencies, which can wildly fluctuate based on market supply and demand. J.P. Morgan Global Research projects the stablecoin market could hit $500B to $750B in the coming years.
There are still questions about practical use cases and the level of realistic adoption of stablecoins. That will determine how much the cryptocurrency will or won’t disrupt the U.S. financial system and traditional lenders like banks, which rely heavily on deposits to fund their institutions.
Given Charlotte’s status as a major banking city, any major shakeup to how payments or deposits are done could force traditional lenders — including ones headquartered or with a large presence here — to rethink longstanding business practices.
The Guiding and Establishing National Innovation for U.S. Stablecoins — or GENIUS — Act that became federal law this summer provided a legal and regulatory framework for stablecoin payments, but more work is still to be done, said Ebrahim Poonawala, managing director of BofA Global Research and head of North American banks research, at a Charlotte Economics Club event on Dec. 3.
“Much like any other banking rules and regulations, you’re going to get a relatively in-depth proposal over the coming months,” he said, adding that it’s expected the FDIC will issue something before the end of the year. The FDIC will be responsible for approving, licensing and overseeing entities that seek to issue stablecoins.
By the first quarter of 2026, Poonawala said he expects additional rules will be proposed around how to regulate stablecoin issuers.
Foreign money transfers are seen as one potential logical use case for stablecoins. Right now, transferring money across international borders must go through multiple parties before reaching its final destination — stablecoins could potentially simplify that process, Poonawala said.
Amazon and Walmart are among the major companies that are said to be exploring introducing their own stablecoins. If a giant like Amazon were to introduce its own stablecoin and incentivize consumers to use that cryptocurrency through rewards, that would probably speed up stablecoin adoption, he said.
Companies that deal with a high volume of transactions could be motivated to introduce their own stablecoins to bypass credit-card processing fees.
If major companies get into the stablecoin game, that could be a big disruptor for more traditional cash and card transactions — and pose a threat to legacy financial institutions. Stocks of Visa and Mastercard took a hit after news reports earlier this year said Amazon, Walmart, Expedia Group and some airlines were exploring whether to issue their own stablecoins, Poonawala said.
But to gain consumer buy-in, stablecoins must be easy to use, as people are accustomed to simple, instant payment methods like credit cards or using Zelle or Venmo to transfer money quickly.
While stablecoins could eventually disrupt the way daily transactions are handled, it’s unlikely to be an overnight shift. Poonawala likened the process to building the U.S. interstate highway system: “If you’re going to build this out, a lot of infrastructure is needed.”
The Charlotte Economics Club holds monthly luncheons and other events on economic policy, business trends, regional growth issues and global economic themes. The Ledger is the club’s media partner. —Ashley Fahey
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