Bank of America Is Fucked

The Next Blockbuster

The next five years of crypto innovation will be a golden age… Banks are completely fucked… The banks and the corrupt government steal consumers’ money… If only American Express had a stablecoin… All this is going to happen over the next 36 months… A major disparity in equity wealth…

Why five years from now, banks (as we know them) will no longer exist.

We are going big on digital assets… so what we want to do is to apply the highest U.S. regulatory and AML [anti-money laundering] standards to digital assets, especially stablecoins… could create $2 trillion in demand for U.S. Treasury bills versus $300 billion today.” – U.S. Treasury Secretary Scott Bessent

Banks are completely fucked.

And no bank is as fucked as Bank of America (BAC).

To everyone (like me) who hates banks of all kinds and especially Bank of America, the next five years of crypto innovation will be a golden age. Right now, as you’re reading this, there’s a crypto programmer who is saying “hold my beer, watch this” as he begins to drain $6.6 trillion in deposits from the banking system.

And, as you’ll see, I am not making that number up. It comes from a recent U.S. Treasury report.

Who is most at risk to the internet revolution of banking: Bank of America.

What follows below might be hard to understand. So just think of it this way. Remember 20 years ago when Blockbuster DVD rentals were the state-of-the art way of distributing digital content?

Back then, was there any expense more annoying than paying late fees? It was those late fees, which every customer hated, that prevented Blockbuster from doing the most logical thing in the world – distributing DVDs over broadband networks.

Even as Netflix (NFLX) launched and boomed – by explicitly ending late fees – Blockbuster wouldn’t change its business model. Why? Because it wasn’t really in the business of entertaining its members. It was in the business of collecting late fees.

What’s going to happen over the next year to the entire banking system is exactly what happened to Blockbuster: The internet is coming for banking.

And the banks are going to be destroyed. How do I know? Because the banks do not exist to serve their clients: they exist to steal from them.

For the last 15 years, I’ve watched banks – in partnership with our corrupt government – destroy trillions in purchasing power by forcing consumers to use a payment system that systematically steals money from every depositor, every day.

How it works is simple:

• Make using cash harder and more expensive 

• Make carrying or using more than $10,000 in cash a virtual crime 

• Seize cash wherever it’s found 

• Make it harder and harder for anyone to withdraw cash 

• Force more and more people to use a payment network – a Visa debit card 

• Force the retailers to pay fees to Visa

• And make sure that everyone is depositing their checks into banks, where all the money circles back every day. The government then devalues that money by 8% to 10% a year, while allowing the banks to pay virtually nothing to the depositors.

Result: 100 million American families are being fleeced to pay for Washington’s excesses and bankers’ bonuses.

Bank of America CEO Brian Moynihan – who authorized the worst trade in the history of the financial markets (a $100 billion+ loss on the bank’s massive 2020-era bet on long-dated bonds) – has been paid $250 million over the past decade. How do you think Bank of America can afford to pay him so much money? By stealing it from you.

But that’s over.

On April 29, 2025, the U.S. Treasury’s Treasury Borrowing Advisory Committee warned Secretary Scott Bessent that the innovation of interest-bearing stable coins “warrants careful consideration” as the innovation of yield-bearing stablecoins could lead to the loss of $6.6 trillion in banking deposits.

This report follows the Security And Exchange Commission’s (“SEC”) approval of the first interest-bearing stablecoin, Figure Markets’ YLDS, which is pegged to the dollar and offers a yield of 3.85%.

Compare that to Bank of America’s 0.03% on “Platinum” checking accounts.

Stablecoins are a blockchain application that allows users to move capital across the internet, to anywhere in the world, instantly – for free. The coins are created using cryptography and are 100% secure. They are 100% backed by U.S. Treasury bills (less than 93 days in duration).

The two leading providers of stablecoins, Tether and Circle Internet (CRCL), offer their coins through exchanges like Coinbase, where they function as a form of non-interest-bearing crypto cash to facilitate trading in various cryptocurrencies, like Bitcoin and Ethereum. These stablecoins – and their brokerage partner, Coinbase (COIN) – make their profits, much like the banks do, by keeping the interest that’s paid by the U.S. Treasury on the underlying Treasury bills. And thanks to the enormously scalable nature of the internet and blockchain software applications, Tether and Circle have become the most profitable banks in history. Tether reportedly made $13 billion last year with only 100 employees. And Circle generated $1.7 billion in revenue with only 900 employees. That’s why Circle’s IPO earlier this month has been such an incredible success: up over 400% in less than a month.

But the technology that underlies stablecoins has far larger implications for commerce and banking.

Legislation making its way through the U.S. Congress (the GENIUS Act) will create the legal framework for stablecoins to be used as a form of payment, allowing users to not only store value in stablecoins on crypto exchanges, but to use them as a trusted and regulated form of payment.

In other words, rather than having your paycheck go into a bank, where it earns nothing, and then generating fees as your cash is digitally sent across private networks (like Visa) to pay for gas, where it is once again sent over private networks back into a bank (really, just a big circle that generates fees), your employer could simply pay you in a stablecoin that you could hold in a secure cloud, or on your cell phone, and use to pay for things directly.

While it’s technically possible for consumers to avoid banks by using brokerage accounts and credit cards (like Fidelity’s Visa card) to avoid holding cash in zero-yield accounts, very few consumers are sophisticated enough to set up these kinds of custom payment systems.

Instead, virtually everyone has their checks deposited into a bank… where they are robbed.

Stablecoins will change all of this.

And that’s obviously a threat to the private payment networks (Visa, Mastercard, PayPal, American Express, Discover). But I think it’s likely that these businesses will adapt and use their huge user bases, plus their brands and their rewards networks, to launch their own coins. If, for example, American Express offered a stablecoin, it would be the only coin I’d use.

While lots of investors have figured out that stablecoins are a threat to these networks, I believe the far bigger threat is to banks. If you can use and hold stablecoins safely, you simply won’t need a bank anymore. It’s like Blockbuster: nobody needs to rent DVDs anymore. Nobody needs to hold dollars in a bank, ever again. You can hold them with stablecoins, yourself.

Stablecoins – which use the internet to facilitate instant and free payments – are so clearly superior to our current payment systems, there’s simply no way that this innovation won’t happen. Sure, current regulations don’t support it. But that didn’t stop ride-hailing giant Uber (UBER). This is so dramatically better for customers (and retailers) that it will happen.

And passage of the necessary legislation (the GENIUS Act) is expected late this year or early next year.

If I’m right, and this is a huge threat to banks, why would the U.S. Treasury allow it?

This is the part I like the most. The irony is simply beautiful.

Why will the Treasury support the stablecoin revolution? Because there is no honor among thieves.

The Treasury is happy to cut banks out of their printing cartel because if U.S.-dollar backed stablecoins are the first to the market, that will facilitate extending the dollar’s status as the world’s reserve currency and create enormous amounts of demand for Treasury bills, helping to fund the government’s enormous debt.

How do I know? Well, look at what Scott Bessent is saying. And think about it: every stablecoin that’s created has to be backed by U.S. Treasury bills!

Bessent has to figure out how to refinance about $10 trillion a year. What better way than draining the banks?

Banks are highly leveraged – unlike stablecoins. Stablecoins (at least for now) must back every coin with 100% U.S. Treasury bills. But for every dollar you put into a bank, the bank only holds about $0.10 in Treasury securities. The other 90% is invested in higher-yielding investments, like loans and mortgages. Thus, every dollar that’s taken out of banks will create 10x demand for Treasury bills.

Over time there will be a cornucopia of stablecoins, with many different “flavors” of money. Just like today there’s dozens of different currencies – some with higher yields, but more principal risk and volatility, some with lower yields, but zero principal risk.

What there won’t be are banks.

And all of this is going to happen in the next 36 months.