JPMorgan CFO Jeremy Barnum has issued a warning about interest-bearing stablecoins, suggesting they could create a "dangerous parallel banking system." Barnum highlighted the lack of prudential regulation and safeguards that traditional banks have developed over centuries, noting that these stablecoins offer deposit-like features and pay interest, which he views as significantly risky and undesirable.
While JPMorgan supports blockchain technology and innovation, Barnum emphasized that the bank's stance aligns with the GENIUS Act's intent to establish regulatory boundaries for stablecoin issuance. He firmly opposes the emergence of a parallel system with core banking features outside the regulatory framework.
JPMorgan CFO Warns Interest-Bearing Stablecoins Pose Banking Risks
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