The U.S Office of the Comptroller of the Currency (OCC) published a letter on Monday. It was said that the banks may use stable crypto coins for payments and other activities.
The federal regulator of the banks of the U.S issued a letter in which it addressed the issue of cryptocurrency and banks. The federal regulator has allowed the financial institutions to join the Independent Node Verification Networks (INVNs), commonly referred as blockchain networks. However, the federal regulator imposed a condition or restriction on banks to use only stable crypto coins.
The letter by OCC said that banks may trade on blockchain to accept payments or other activities, as nodes.
OCC has also released a warning for banks through a press release. It said that banks who participate in blockchains must be cautious of protocol to avoid any risks of fraud.
OCC also said that even though they believe the blockchain networks to be more secure than other payment networks. As it involves a large complex system to authenticate transactions which lessens the chances of hacking.
Executive director of the Blockchain Association, Kristen Smith tweeted her opinion regarding the letter OCC approving blockchains for banks. She said that this letter assigned blockchains the same status as other financing networks such as SWIFT, FedWire etc.
The acting head of OCC stated that other countries are developing real-time payment networks while the U.S is relying on others. He said that the U.S is looking towards the private sectors for such innovation in the technological sector. By this act, U.S is apparently promoting the usage of cryptocurrencies over the real-time financial systems.
Mr. Brooks, acting head of OCC, has also announced his favor of a letter issued by the President’s Working Group. The letter suggested a few points on how to regulate less volatile coins in the country.
Mr. Brooks was twice nominated by Mr. Trump to acting as the head of OCC. However, would Mr. Brooks be able to schedule a confirmation vote from the U.S Senate seems unlikely?
It is worth noting that the Monday letter came the same day when Public comment ended for Crime Enforcement Network. Reportedly, the half month period for comments was headed by Steve mnuchin, U.S Treasury Secretary. Mr. Steven was the one who appointed Mr. Brooks as the head of OCC in 2020.