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US banks were allowed to make payments in stablecoins

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US banks were allowed to hold reserves in stablecoins. WEEKLY CRYPTONEWS

US banks were allowed to make payments in stablecoins

US banks were allowed to make payments in stablecoins
CONTENT

  • US banks received the right to conduct transactions in stablecoins

  • Also financial institutions can act as network validators

  • In the US, the fight continues to tighten the regulation of the crypto market

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American banks can now not only act as nodes in blockchain networks, but also make payments in stablecoins

The Office of the Comptroller of the Currency (OCC) has authorized US financial institutions to use blockchain infrastructure to process stablecoin payments. This was reported in a press release from the OCC.

US banks were allowed to make payments in stablecoins

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In particular, the regulator allowed US banks to take part in an independent verification of the nodes of blockchain networks, as well as use stablecoins to conduct payment and other banking operations. Now a national bank or federal savings association can verify, store or record payment transactions, acting as a validator on the blockchain network.

OCC takes a step forward

The regulator expects that the entry of financial institutions into the blockchain industry will increase the efficiency, effectiveness and stability of payment activities. For example, OCC expects to improve the sustainability of payments compared to other payment networks..

The use of the blockchain, the regulator writes, also reduces the risk of forgery or adding inaccurate information to the database, since information is added only after reaching a consensus between the verifying nodes..

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Nevertheless, the regulator emphasized that banks should be aware of the potential risks when using the blockchain, including operational difficulties, compliance and fraudulent schemes. Cryptocurrencies are a new financial instrument that opens up their prospects for each market participant. Some consider digital assets as a source … More.

Brian Brooks, head of the OCC and former legal counsel for cryptocurrency exchange Coinbase, said that with this ruling, the OCC wanted to remove any legal uncertainty regarding the authority of banks to connect to blockchains..

For the benefit of regulation

US banks were allowed to make payments in stablecoins

However, in the US, there is still tension in the legislative field around the regulation of the virtual assets market. The editorial staff of BeInCryto reported that at the beginning of December a bill was presented in the United States, according to which issuers of stablecoins will be required to obtain permission for their activities from banking regulators..

Read also: Biden urged to tighten regulation of crypto services

In mid-December, the United States proposed to introduce mandatory verification of cryptocurrency wallets. In particular, it is proposed to apply advanced verification methods of the wallet owner in case of withdrawal of funds in the amount of more than $ 3000.

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