The office of the Comptroller of the Currency(OCC) stated on Monday, that federally regulated banks can utilize Stablecoins to carry out payment transactions and related activities. The federal bank administrator released an interpretive letter to justify whether national banks and federal savings organizations keep contributing to independent node verification networks (INVNs).
The letter further states that these commercial institutes will contribute as nodes on a blockchain and will keep or confirm payments. The OCC journalists mentioned that banks willing to make use of INVNs should be familiar with related needs like operations, approval, and scam risk.
The OCC says INVNs” may be more resilient than the other payment networks” as an immense number of nodes required to validate transactions, which can, in turn, specify confusion.
The director of the Blockchain Organization Kristin Smith said on Twitter that “ the letter states that the blockchain has the same status as the other global financial networks such as SWIFT, ACH, and FedWire.” Brain Brooks expressed in a report that other nations have set up real-time cash structure, the US has trust in the private sector to establish such technologies, officially admire the acceptance of cryptocurrencies. Especially Stablecoin as particular to other real-time payment schemes.
Brooks issued his endorsement of a letter by the president functioning system on financial markets that prescribe how Stablecoin will be adjusted within the U.S.
The OCC letter is a positive development and a hope that the Govt will consider the blockchain-based cryptocurrency as a future payment system.