Deposits have never been so high—growing by $865 billion in April alone, CNBC reported. Deposits in total have increased by $2 trillion since January after record amounts of cash were pumped into US bank accounts to help with COVID-19 chaos. Money in bank accounts now stands at a whopping $15.4 trillion, June figures show.
The flood of money is due to the US government doling out trillions of dollars to help its citizens with the economic hardships brought on by COVID-19 lockdowns; an unlimited bond buying program by the Federal Reserve; and people hoarding money because of uncertain times.
That money is sitting in bank accounts. The biggest US banks—JPMorgan Chase, Bank of America and Citigroup—have experienced astronomical growth, CNBC reported. But there is such a surplus of cash, CNBC reports, that banks don’t quite know what to do with it.
This seemingly endless supply of cash—globally, not just in the US—could lead to a crash in the price of the dollar, US economist Stephen Roach recently predicted.
Others have said that the constant money printing could benefit Bitcoin.