U.S. banks get green light for stablecoins

There is nothing standing in the way of American banks using blockchain technology and stablecoins to facilitate payment transactions. On January 4, Brian Brooks of the Office of the Comptroller of the Currency (OCC) This news item U.S. banks have been officially authorized to participate in "independent node verification networks (INVN) such as blockchains" and to use stablecoins for payments and other banking activities.

Gold on the blockchain and the potential for gold adoption by banks

The crypto community has responded enthusiastically to the message; The gold community has not yet woken up to the possibilities it brings to the adoption of gold. In concrete terms, it means that blockchain application networks such as Polkadot, Stellar or Ethereum, but of course also those of Bitcoin, can be integrated into the US banking system. All kinds of tokens that represent assets on a blockchain network can now be processed by banks.

Banks can start issuing certain tokens on a blockchain network of their choice. We can think of USD stablecoins (tokens), digital effects (the Security Tokens), as well as tokens (stablecoins) that are backed by gold. A well-regulated example of a stablecoin backed by gold in the United States is the Paxos Gold token. The digitization of gold could further strengthen the adoption of the precious metal as a monetary tool within the U.S. payment system.

The importance of the OCC to the future of U.S. banking

As the former Chief Legal Officer of Coinbase plays the current Acting Comptroller of the Currency Brian P. Brooks a home game at this site. In the news release, he highlights the unique possibilities of blockchain:

"In other countries, the government has built real-time payment systems, but the United States likes to rely on the innovative power of the private sector to develop real-time systems. Some of these technologies come from bank consortia and others come from independent parties. The Working Group on Financial Markets has established a framework for the future transition to a stablecoin-based financial infrastructure.

The main risks have been identified, but have chosen to manage these risks regardless of the underlying technology. Our message removes any legal uncertainty for banks when using blockchain and making payments in stablecoins. They are now able to meet the needs of customers who increasingly want the speed, efficiency, interoperability and low cost that they know from crypto."

The OCC assists, regulates and controls all national banks and federal funds as well as the U.S. branches of foreign banks. The institute was founded in 1863 as part of the National Currency Act, which became the National Banking Act in 1864. This arbiter is therefore much older than, for example, the Federal Reserve.

American democracy is in crisis, the dollar is losing international prestige and the American banking and payment system is outdated. The green light is on, it is now up to the banks to adopt and innovate with the new monetary technology. In 2021, we are in a Monetary Revolution and we are on the eve of a Great Reset. This also offers opportunities for the adoption of gold and a possible reintroduction of gold as an anchor for a possible 'new' global monetary system.

Disclaimer: This article on Bitcoin is for educational purposes only. It is not investment advice. The article was written by Luuk Soons, the editor-in-chief of bestebank.org. Source: bestebank.org