US regulator permit Banks to use Crypto for payments

Since their inception, cryptocurrencies have been considered particularly volatile investment instruments when it comes to their price. That’s led to price jumps and crashes, preventing cryptocurrencies from being used for everyday goods and services in some cases, due to the risks for vendors and merchants.

United States financial regulator through the Comptroller of the Currency (OCC)said National banks and federal savings associations can use public stablecoins to conduct payment activities and other bank-permissible functions.

The Office of the Comptroller of the Currency (OCC) specifically mentions the use of stablecoins for transactions, saying blockchain networks can mitigate costs for cross-border transactions as a “cheaper, faster, and more efficient” means of payment.

Acting Comptroller of the Currency and former Coinbase head of legal Brian Brooks said regulators may consider limitations on “multi-currency stablecoins” and highlighted possible risks of one-to-one tokens.

The federally chartered banks can hold reserve funds for fiat-backed stablecoin issuers, as previously reported.

This have help to  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

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What is stablecoin?

stablecoin is a new class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset.It’s a cryptocurrency designed to have low price volatility. Stablecoins are used as stores of value or units of account, as well as in other use cases where volatile

Stablecoins attempt to bridge the gap between fiat currencies and cryptocurrencies. There are three categories of stablecoins, all based on their working mechanism.

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