In the United States, the agency responsible for supervising banks, the Currency Control Office (OCC), has formally authorized national banks to hold reserves for stablecoin issuers.
Some stablecoin issuers already have fiat reserves in national banks. According to the statement made by the OCC, reserve holders will now be able to hold reserves through stablecoins other than fiat currencies.
Stablecoins are digital assets that are often backed by another asset that is a fiat currency, such as the US dollar, in order to remain relatively stable in value. Dollar-backed stablecoins include Tether, Gemini and USD Coin.
What is Stablecoin?
Since the inception of cryptocurrencies, it has been highly volatile when it comes to price. Since the sudden ups and downs in price increases have become an obstacle for the daily use of cryptocurrencies, stablecoins supported by fiat currencies have emerged.
Although the companies that issue Stablecoins use American banks, this use did not have any legal basis. With this decision of the OCC, stablecoin issuers will be able to continue to serve in a fully legal order. This development is very important for the future of cryptocurrencies.
In the letter published by the OCC, it was especially emphasized that this decision taken for cryptocurrencies is only for stablecoins that serve 1 to 1.
In July, OCC authorized American banks to store cryptocurrencies on behalf of their customers.
These decisions made by the regulatory authorities in America, especially recently, raise great hopes for the future of cryptocurrencies. Realizing that they cannot prevent the development of cryptocurrencies, states are making new regulations in order to somehow control these digital assets. All these regulations give confidence to institutional investors. The support of cryptocurrencies by institutional investors is particularly important for the acceptability of cryptocurrencies.