US Banking Regulator Tells Banks They Can Use Stablecoins for Payment Activities

US Banking Regulator Tells Banks They Can Use Stablecoins for Payment Activities

By Abhimanyu Krishnan | News | 5 Jan 2021


The Office of the Comptroller of the Currency (OCC), part of the US Treasury, announced on Jan. 4 that banks could use stablecoins for payment activities. 

  • The letter states that banks and thrift institutions can participate in independent node verification networks (INVN) and use stablecoins for payments and bank-permissible functions
  • Acting Comptroller of the Currency Brian P. Brooks said that the statement “removes any legal uncertainty about the authority of banks” to use blockchains for the aforementioned uses
  • It also notes that blockchain use ma enhance the efficiency, effectiveness, and stability of payments, while also pointing challenges in the form of operational and compliance risks
  • The OCC oversees the chartering, regulation and supervision of national banks and thrift institutions
  • Stablecoins have been a large point of contention among regulators, who fear that the fear that the assets could impinge on national sovereignty;  the G20 nations are working on a stablecoin framework
  • Major payment networks like Visa are already entering the space as well, having partnered with Circle to integrate USDC payments

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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