The Office of the Comptroller of the Currency Says Banks Can Use Blockchain and Stablecoins for Settling Payments

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^ The crypto community, and the price of ethereum and bitcoin, reacting to an interpretive letter posted by one of the U.S.’ largest banking regulators on Monday.

In said letter, the Office of the Comptroller of the Currency (OCC) clarified that federally chartered banks can run cryptocurrency nodes and use blockchains to validate, store, and record “permissible payment activities.” That means financial institutions can use stablecoins for cross-border payments and interbank settlements.

• Compared to existing financial infrastructure (Swift, Fedwire, etc.), distributed technologies could make payment settlements “cheaper, faster, and more efficient,” the OCC said.
• The U.S. is letting the private sector build real-time payment rails, Brian Brooks, Acting Comptroller of the Currency, noted, as other governments build their own digital currency systems.

One thing’s for certain: This decision paves the way for more blockchain adoption.

+ On the other hand: The crypto community has pushed back on the proposed rulemaking of the U.S. Financial Crimes Enforcement Network, which would heighten know-your-customer requirements for unhosted wallets.