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My Thoughts on the OCC Guidance. Another Thread
In my opinion this is strictly referring to remittances, or digitizing p2p/b2b cash movements. As a bank you save a lot of money on the back office by transitioning, however I wouldn't imagine you see your Chase or Citi Account
In my opinion this is strictly referring to remittances, or digitizing p2p/b2b cash movements. As a bank you save a lot of money on the back office by transitioning, however I wouldn't imagine you see your Chase or Citi Account
having rails to do this near term, semi costly infrastructure to change. This may disrupt eft, but most consumers know little of the beast that is swift as it pertains to bank to bank cash and securities infrastructure. So likely minimal change to overall swift/fed wire at start
If I was Mr. Comptroller and I wanted to keep USD king, making USD backed stables legit is a great first step. And from a bank Tier 1 capital perspective this is great. Tons of fresh highly liquid collateral, not to mention extra funding for my trading desks ie Repos.
However it may take a year or so for Banks to setup these rails, this makes me bullish on Traditional Banks, Bearish on fintech ie Venmo/CashApp, as you are decreasing the size of their p2p moat. From a cryptocurrency perspective anything legitimizing crypto is good, now whether
these run on private bank owned nodes, who knows, if on a public chain and directly tied to $USDC i would say they would use $ALGO - so bullish $ALGO, as ETH in its current form probably not feasible. Maybe Solana/Stellar idk.
From an AML perspective, should be easy to integrate
From an AML perspective, should be easy to integrate
USDC payments and tie an address to a name, then you get minimal increase on the regulation costs to implement this additional feature. Unlikely you will be able to yolo send from your bank to your DeFi wallet imo.
This is likely setting the stage for a banking owned stable to be laid, so your algo stables will not be used lol. I could see USDC, JPM Coin, GUSD, Prob not USDT, Other fiat backed, not to mention the USD CBDC to rule them all. Whether they are 100% backed or partial reserved
is yet to be seen. But overall happy with this piece of guidance for the US to compete with China's upcoming digital yuan. - I'll leave the ease of digital tracking/privacy concerns on these for another time.
