**Always take in consideration non of this information is financial advice or official announcement from any specific project, I’m no financial advisor, trader or expert, this is just my personal opinion on certain project mention on this article, cryptocurrencies are extreme high risk assets and you must do you own research, never follow what I or other people say on internet**
Office of the Comptroller of the Currency (OCC) Faciliate stablecoins to banks
Now days I still have friends who work at banks that every time I tell them about news like this they denied it or say its fake news, first on October last year when Citigroup announce their crypto custody service and now the OCC alowing banks the use or stable coins, for them this is out of this world and is not possible since crypto currencies are not backed up by anything like traditional currencies are, this was inevitable and it was not a matter of IF but a matter of WHEN.
Now its official and cant be deniend, banks using crypto
I always try to be as realistic as possible and sometimes my comments or decisions in time are contradictory because if I’m wrong is because I have identify what is not actually working then ppl say how I can “FUD” a project that Im or was invested and for me is just as simple as that, just because I’m into a project or previously talk about it doesnt mean it can’t suck, same thing goes for this bull market. No one can denied we are into a bull market, if you havent seen how parabolic most cryptocurrencies are that I really dont even want to trade them, makes no sense to trade right now just to buy those that still are not parabolic and keep waiting until a big move happens in this case a correction follow-up with sideways movement, long short story this bull market could be different in a sense that IF countries start to take this kind of actions within their financial systems to alow ppl the use of crypto currencies on mayor financial entities like banks then its possible that Bitcoin and many other altcoins become fully mainstream exposing them to millions of users that now wont have to deal with their crypto wallets and do all this through their bank, but was crypto currencies really created for this?? No they were not, crypto currencies were created to cut off the middle men, meaning goverments, banks anything that stands between you and your crypto assets.
Last month I found this article looking for any news about new US Digital Dollar, https://www.americanbanker.com/podcast/a-fed-digital-currency-looks-inevitable-so-do-the-problems
They clearly describe how convenient is to use a digital currency from their phone app but a few concerns come up during their podcast:
Security: what if this digital dollar network gets hacked?
Privacy: does this means now that there is no paper ppl will now exactly how much capital I have?
Technology: as the network grows is it stable and what happens if it crash?
Concerns like this are totally natural when trying to make a transition from old traditional FIAT to digital, with this recent news from the OCC it wouldn’t surprise me that banks will fork stable coins because I don’t think they would be using any existing stablecoins like Tether or USDC for many reason the most important security and control, if you think what is a bank putting aside if they are fair or not, a bank is a financial institution that provides their users safety of their capital with close system that can track down every transaction and reverse or correct them when there is a human error, that’s just a quick definition of how a bank can help their users and why I think they could go with the fork option.
“Likewise, a bank may use stablecoins to facilitate payment transactions for customers on an independent node verification network, including by issuing a stablecoin, and by exchanging that stablecoin for fiat currency.”
As we all know it could be very cheap to transact using blockchain, specially if its not fully decentralize such as not my number one option to transact but lets be honest TRON and XRP are very cheap but we all know how centralize are this projects same goes to the Tether TRC20, meaning they did the math and knows that it would be extremely cheap for them and their customers to transact at any time during the day 24/7, but same as Paypal letting their clients to use crypto within their platform, are they really going to use crypto stablecoins or is this just a PR Move trying to make that money that is turning into crypto stay within their doors?
“Just as banks may buy and sell ESV as a means of converting the ESV into dollars (and vice versa) to complete customer payment transactions, banks may buy, sell, and issue stablecoin to facilitate payments. For example, one entity (payer) may wish to remit a payment of U.S. dollars to a second entity (payee). Rather than using a centralized payment system, the payer converts the U.S. dollars to stablecoin and transfers the stablecoin to the payee via the INVN. The payee then converts the stablecoin back into U.S. dollars. In one common version of this fact pattern, the payment is a cross-border remittance.”
After reading this quote, to me it seems they just found another business that is sell crypto to their clients while making that money staying within their boundaries, “the payer converts the U.S. dollars to stablecoin….The payee then converts the stablecoin back into U.S. dollars” most likely this “”conversion”” of USD to Stablecoins wont be free.
If crypto currencies including stablecoins can already work without a bank, why would you use your current bank to use a stable coin?
I think this is good for crypto from the point that clears out users doubts about crypto currencies since for many years all the media said “Bitcoin is for criminals” but hey biggest criminals on earth and now using it and accumulating Bitcoin if you know what I mean….
Having this kind of regulations within financial systems around the world are very important for crypto and will keep pushing the price of the entire crypto market but the only thing that worry me is not IF but WHEN any of this large holders of Bitcoin will start taking profits because in the not far future we will see a war of power between titans of who has more Bitcoin and we already know who they are
Having banks and institutions on board could turn this bull market more aggressive than ever and prices like Bitcoin at $300k or Ethereum at $75k are not anymore an illusion considering if Bitcoin becomes the new gold standard and Ethereum official blockchain tech titan, same reason Im still accumulating with profits other coins that are top performers on their field, this can turn out to be a more aggressive bull market than the one on 2017 although always keep in mind that if the wind starts to blow in the wrong direction because of any tech incident or regulation Bitcoin could crash very very very hard so don’t go all in.
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