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American financial regulator allowed banks to use stablecoins

January 6, 2021
4:55 AM

“While governments in other countries are creating systems to make payments in real time, the United States relies on the innovation sector for such technologies. Some of these technologies are created and managed by banking associations, while others are based on networks of independent verification nodes such as blockchains, ”said current currency controller Brian Brooks, adding that his department’s letter is intended to address gaps in the use of blockchains and stablecoins in maintaining banking activities.

“Banks must consider the potential risks when conducting business on the blockchain, including operational risks, legal compliance and fraud. New technologies require sufficient skills to ensure that banks can handle these risks, ”the regulator warns.

1/ Breaking major news from US Treasury OCC, the largest US banking regulator (@USOCC), with new guidance allowing US banks to use public blockchains and dollar stablecoins as a settlement infrastructure in the US financial system. https://t.co/gQFWISWUnc

– Jeremy Allaire (@jerallaire) January 4, 2021

“Huge win for cryptocurrencies and stablecoins. The significance of this announcement cannot be overemphasized, he writes. – We are on the way to ensure that all important economic transactions are carried out on the blockchain. As a result, dollar-based digital currencies can be used as a mass tender for all forms of payments and settlements. Also, more financial institutions will be able to launch nodes in blockchains and even become validators. ”

Donald Westbrook

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