The Office of the Currency Supervisor (OCC) early this morning has given permission to local banks to use stablecoins and blockchains in payment transactions.
As long as it complies with the law, the OCC clarifies that local banks or state savings organizations are allowed to carry out operations such as verifying, storing and recording payment transactions by functioning as nodes in INVN (independent node verification network).
Similarly, banks are allowed to use INVN and stablecoins to carry out authorized payment related activities. ”
The decisions taken reflect the financial centers and banks facing the challenge of transferring funds at a rapid rate.
Thus, blockchains including distributed ledger technology are seen to be much more efficient in conducting fast transactions.
The OCC also stressed that blockchain does not change like the global financial networks such as SWIFT, ACH and FedWire are currently used.
However, realizing that the future of stablecoin is difficult to anticipate, the OCC also reminded banks to be wary of potential risks.
"Banks need to be aware of the risks when carrying out activities involving INVN including operational risk, compliance risk and fraud", as the new technology requires a group of experts to deal with risk well.
