OCC to boost attractiveness of 100% fiat-backed stablecoins1. November 2020
Discover in video Nathalie Janson’s prediction about stablecoins. Banks based in the USA will receive deposits linked to the issuance of stable crypto-currencies which will enhance the attractiveness of these? The reflections presented in this prediction series also touch on other ideas of the macroeconomic order. We invite you to discuss each prediction made by sharing your opinion with us.
What is the OCC?
The OCC (Office of the Comptroller of the Currency) also called the Office of the Comptroller of the Currency in the United States is an entity of the United States Treasury. Its objective is to regulate, supervise and supervise national or foreign banks (but also savings banks) and to prosecute illegal behavior with the aim of promoting competition in this sector. The idea is also that this body can improve efficiency in this area. This organization was created in 1863 by the National Currency Act: the law on the national currency. Official site .
What are stablecoins?
Stablecoins are stable currencies. The goal is that the value of a stablecoin gets as close as possible to the asset it wants to replicate. For example, the value of a Bitcoin Lifestyle will always approach a dollar (USD). This allows players operating in the cryptocurrency universe to benefit from a certain stability. Indeed, crypto-currencies regularly perform strong variations upwards as well as downwards. Thus, if 1,000 USDT is circulating, the issuing entity must have 1,000 USD in a bank which will allow actors to recover their dollars when they wish.
Nathalie Janson indicates that the OCC recently declared that banks and savings banks will be able to receive deposits from issuers of stablecoins. That is to say the reserves that cover the stable cryptocurrencies issued. Thus, these establishments will become the guarantors of the stablecoin coverage. Very good point for the owners of these stable cryptos, they could benefit from the insurance of deposit coverage. On the other hand, issuers of stable cryptos will have to be in compliance with current regulations such as banking secrecy, anti-money laundering and on the verification of the identity of end users of these stable digital currencies. Only stablecoins backed by 100% fiat currencies (euro, dollar, etc.) are concerned.
Do you think, like Nathalie Janson, that this statement will strengthen the appeal of stablecoins, these cryptocurrencies backed 100% by fiat currencies?
Find out more about the Institut de l’Iconomie
Association created in 2011, the Institute of the Economy is an independent think tank which analyzes the stakes, the balance of power as well as the risks and the opportunities to draw a possible future. Its members often have opposing sensibilities, which in fact requires them to refer to the rigor of foresight, hence the formation of predictions.
The Institute of the Economy is composed in particular of entrepreneurs, economists, managers, statisticians, researchers and sociologists.
The speakers of this webinar are therefore not from the “crypto-sphere” and do not necessarily share the ideals of cypherpunks or the majority of people who own crypto-assets. However, it is still interesting to see how the future of the cryptocurrency industry is viewed.
You are invited to vote in order to give your opinion on each prediction, but also to debate, comment and make known your opinion on this subject. Click here to view other predictions from members of the Institute of the Economy.