PNC Bank CEO: Stablecoins must choose between being investments or payment tools

Bill Demchak, CEO of major U.S. bank PNC, has argued that stablecoins must choose whether to function as an investment product or a payment method. Speaking during an earnings call on Jan. 16, Demchak stated that stablecoins paying interest to holders are similar to money market funds and should be subject to the same regulations, CoinDesk reported. He warned against the dual use of stablecoins without clear rules, adding that he opposes the push by crypto firms to offer interest on these assets. Demchak emphasized that such a structure would not be permitted in the traditional financial system without strict regulatory oversight.