Amid a falling market, interest in stablecoins is growing. And regulators tend to encourage him.
The Office of the Comptroller of the Currency (OCC) has published a letter clarifying the rights of national banks according collateral of stablecoins. Until now, this activity was outside the legal framework. Banks accepted the assets as security for stablecoins, but did so at their own risk. They are now officially allowed to receive and hold security for stablecoins pegged to fiat currencies. The OCC letter says:
– National banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law, including those relating to the BSA and anti-money laundering.
Earlier in July, the OCC issued an order stating that US national banks can provide cryptocurrency custody services:
– Banks may offer different methods of providing cryptocurrency custody services, depending on their expertise, risk appetite, and business models.
These steps made by the regulator have been very positively received by the market, as they promise a great adaptation of cryptocurrencies.
Meanwhile, fiat payment giant Visa is considering using blockchain in payments. Visa is the largest centralized payment system. However, a cryptocurrency division has been created and operates in it. Its chief executive, Cuy Sheffield, said Visa is collaborating on the developing of central bank digital currencies (CBDCs), which are similar in nature to tokenized assets and stablecoins. 25 crypto companies of various levels are currently connected to the Visa network, they mainly specialize in stablecoins. Stablecoins contribute to the development of the crypto market by being a bridge between crypto finance and fiat money.
By the way, Bloomberg once again spoke in support of cryptocurrencies. Analyst Mike McGlone stated there are signs of an undervalued crypto market and bitcoin. The first is the growing hash rate, which has increased 1.4 times in 2020, from 98 to 136 EH / s (Exahesh / sec). Such dynamics, according to the analyst, signals that miners are confident in the growth of the BTC price. Factor number 2 is the growth in the number of active wallets. According to McGlone, these factors point to a fair price of $15K for bitcoin. Taking into account Bitcoin Dominance at 58.6%, the market capitalization should be no less than half a trillion dollars (now it is more than $325 billion).
Growing bitcoin, as a rule, always pulls the entire crypto market. But this year, there have already been situations when altcoins pushed the market up. Stablecoins have always served as a safe haven asset in times of a market downfall.