Finance Breaking news OCC approves the use of stablecoins for banking transactions last financial news
Breaking-Finance.Com - Top US banking regulator, the Office of the Comptroller of the Currency, has approved the use of stablecoins for the settlement of financial transactions by banks.
Breaking-Finance.Com - Top US banking regulator, the Office of the Comptroller of the Currency, has approved the use of stablecoins for the settlement of financial transactions by banks. The OCC guidance clears the way for banks to participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions.Acting Comptroller of the Currency Brian P. Brooks, says: “The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way. Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.”The agency letter concludes a national bank or federal savings association may validate, store, and record payments transactions by serving as a node on an INVN. Likewise, a bank may use INVNs and related stablecoins to carry out other permissible payment activities.
. Rather, the lifting of perceived restrictions is linked to regulatory-approved bank-issued coins and central bank digitial currencies.In a Twitter thread, Ciricle co-founder Jeremy Allaire hailed the OCC's letter as a huge win for the cryptocurrency industry. 3/ The new interpretive letter establishes that banks can treat public chains as infrastructure similar to SWIFT, ACH and FedWire, and stablecoins like USDC as electronic stored value. The significance of this can’t be understated.— Jeremy Allaire (@jerallaire) January 4, 2021 5/ We are on a path towards all major economic activity being executed on-chain. It is tremendous to see such forward thinking support from the largest regulator of national banks in the United States.— Jeremy Allaire (@jerallaire) January 4, 2021
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