Mohamed El-Erian on BTFP guaranteeing uinsured deposits

We're here [bank failures] basically because we had a prolonged period of overly-loose monetary policy.  When it came to adjusting monetary policy, the Fed did not act fast enough and then it had to hit on the breaks.  And you've heard me say over and over again, when you hit the breaks, you risk both economic and financial accidents.  And we've just lived through a financial accident.

It's important to stress that depositors should not worry.  Your deposits are fine.  And there is no need to move your deposits...  Honestly, there is no risk to your deposits anymore.

It is almost impossible now to go back on unlimited deposit guarantee.

~ Mohamed El-Erian, CNBC interview, 0:45 mark, March 13, 2023

Janet Yellen: "our banking system remains sound"

I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them.  This week's actions demonstrate our resolute commitment to ensure that depositors' savings remain safe.

Importantly, no taxpayer money is being used or put at risk with this action.  Deposit protection is provided by the Deposit Insurance Fund, which is funded by fees on banks.

~ Treasury Secretary Janet Yellen, appearing before Senate Finance Committee, March 16, 2023

Jeremy Allaire on the difference between stablecoins and bank deposits

FDIC exists, actually, because banks don't hold your money on a full reserve basis.  They take your money and then they lend it out eight times over.  The insurance exists because the banks actually don't have your money.  They've lent it out a bunch of times.  And so it's really a protection if there was a run on the bank that there would be some coverage for people.  Electronic money is much more conservative.  We are required by law to hold one-for-one reserves.

~ Jeremy Allaire, Circle co-founder, Yahoo!Finance interview in Davos, 3:45 mark, January 22, 2023