US regulator authorizes banks to hold reserves for stablecoins

The stable currencies that banks and financial organizations handle should be backed by the dollar

Banks and financial entities authorized by the Federal Government will have the approval of the Office of the Comptroller of the Currency (OCC) of the United States in order to maintain stablecoins reserves.

According to a letter published recently by the Office of the Currency Controller (OCC), the authorities allow federal banks to maintain their clients’ reserves as long as they are currencies backed by a single fiat currency – in this case by the dollar – and that these are kept stored in housed wallets.

On the other hand, the US regulator defines stablecoins as “a type of cryptocurrency designed to maintain a stable value compared to other types of crypto assets.”

With the guidance that the regulator is providing, it is expected to have greater clarity and regulatory understanding regarding the operations that can be carried out with these types of assets.

In addition, it should increase the reliability character of stablecoin issuers by keeping their coins in the hands of banks and financial institutions in the United States.

K.Villarroel

Source: news.bit2me

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