The main American banks weigh the common Stablecoin to counter the threat of encryption: Report
The largest commercial banks in the country are holding early talks to create a joint Stablecooin, an effort to defend their dominance in the ecosystem of payments, written me an encrypted currency and organizational support that grows under the Trump administration, The Wall Street Journal reported.
Discussions include major banking players including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and others through the entities they participate in, such as early warning services-App App Zelle- and House Clearing, which runs the actual time payment network.
According to the people familiar with the matter, WSJ said, these companies are considering whether they will cooperate in a unified digital code that can be used through member institutions and perhaps outside it.
The concept remains at an early stage and is subject to change.
Persons concerned said that the final decision will depend on several factors, including whether there is enough demand for consumers and business on the bank’s Stablecoin, and how the new legislation constitutes the organizational framework.
A draft genius law encourages encryption companies to apply for a banking charter
Stablecoins are digital currencies designed to keep one connection to one with a national currency like the US dollar.
It is supported by reserves such as Cash or the American Treasury Secretary and is used primarily in the encrypted currency sector to facilitate trading or the value of the store.
However, banks are increasingly seen as a promising tool to accelerate traditional financial processes such as border payments, which may take days using the current infrastructure.
The potential step by banks comes amid increasing signs that the Trump administration is preparing to accelerate the support for Stablecoins.
Last month, the Wall Street Journal reported that many encrypted original companies are preparing to apply for banking covenants, which are encouraged by momentum behind a draft law called the genius law.
The draft law aims to create a federal framework for the issuance of Stablecoin, allowing banks and unqualified to participate.
On Thursday, the Senate submitted the last draft law a procedural obstacle.
A recent note from the law firm Paul Hastings has noticed that the last draft includes restrictions on the STABLECOIN version by public non -financial companies – an attempt to satisfy bank pressure groups – but do not stop the full ban.
Large banks seek the digital edge before moving technology giants
Banker leaders fear that if they do not move quickly, deposits and payment activity can be converted to cryptocurrencies or technology giants that enter the area.
Trump’s alignment entities, like the world of the Trump family, recently launched its Stablecoin, indicating the expansion of private digital currency initiatives.
On this background, banks see a possible opening to reaffirm their hegemony.
The bank -backed Stablecooin can provide a faster and safer alternative to local payments and borders.
Some sources said that the model under discussion may allow non -owners banks to use Stablecoin, and possibly expand adoption.
However, a separate voltage of the smaller banks to create their Stablecoin has faced highly declining operational and strategic obstacles.
The main American banks weighing the joint Stablecoin weighs to counter the threat of encryption: the report first appeared on Invezz
