Bowman Raises Concerns Over Stablecoins’ Impact on Financial Stability

Federal Reserve Governor Michelle W. Bowman has sounded the alarm about stablecoin risks, warning of a potential $6.6 trillion deposit outflow if these crypto assets are allowed to pay interest. In her recent speech at the Santander International Banking Conference, Bowman highlighted the potential impact of stablecoins on traditional banking systems. She urged banks to separate digital assets from their usual banking activities to ensure financial stability and prevent significant capital shifts.