Cryptocurrencies have taken another step to becoming acknowledged by traditional institutions as a top US regulator has approved the use of stablecoins for the settlement of financial transactions by banks.
The Office of the Comptroller of the Currency’s new guidance clears the way for banks to participate in independent node verification networks and use stablecoins to conduct payment activities and other bank-permissible functions.
“The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way,” said Brian P. Brooks, acting Comptroller of the Currency.
“Our letter 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.”
The news comes as bitcoin and other cryptocurrencies have attracted a lot of investors lately and breaking many old valuation records over the last year.
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