In a transformational moment for the coded currency industry with new regulations coming from the United States, major financial institutions put their attention on Stablecoins, thanks to the passage of Genius.
This organizational framework, which is part of President Donald Trump’s vision of the United States as a global leader in the encrypted currency, paid banks like Bank of America Explore Stablecoins.
Should companies create their own Stablecoins?
While the genius law opens new ways to use Stablecoin, experts warn that the journey towards successful implementation will not be clear. The capabilities of the payments and immediate settlements that Stablecoins are attractive, especially when Traditional banking transactions It can take days.
According to what companies such as Walmart and Amazon think about their Stablecoin initiatives, indicating a major shift in how to make financial and retail services in the future.
However, a conversation a report Reuters highlights that the genius law does not immediately cancel the complications associated with the launch of Stablecoins.
Companies must move in a maze of strategic and technical challenges. One of the basic decisions is whether their Stablecoin will be created or to merge the current options.
According to what was reported, the intended use of Stablecoin will have a greater impact on this decision; For example, the retail platform may develop Stablecoin to enhance customer participation, while others can use it for internal transactions across the border.
Stephen Aschitino, the Steptoe partner, stressed the importance of the goal in this decision -making process. “Is this really designed to push customers to interact with the source, or is the primary motivation for the source to get Stablecoin more prevalent?” question.
For non -bank entities, the adoption of Stablecoins will inevitably lead to the brought of new compliance obligations. The genius law is imposed on exporters on its adherence Money laundering (AML) (KYC), which may impose additional costs and supervision requirements.
Organizational guidelines remain unconfirmed
According to the report, the effects of retaining cryptocurrencies in dollars extend to these institutions to organizational compliance as well. Banks must think about how this Digital assets It will affect liquidity requirements.
Julia Dimidova, head of digital currency products and strategy at Fis, indicated that Stablecoins kept on banking budgets may require greater capital reserves under the current regulations.
“The genius law is great, but if the bank is dealing with Stablecoin on the public budget under cautious banking regulation, you still have to look at the weight of the risk of the original,” I noticed.
Another decisive aspect of companies that venture into these encrypted currencies is the choice of Blockchain technology. Stablecoins can be released on different Blockchain networks, with ETHEREUM (ETHEM) and Solana (Sol) Being popular options.
However, banks may tend towards a special and dissolved Blockchains to ensure the governance and control of transactions. Dimidova indicated that banks are likely to give priority to clear structures and control, which often lacks general Blockchain environments.
Despite the excitement surrounding the law of genius, its date is still insecure, as it is expected that the Federal Banking Organizers will issue rules that clarify the requirements of compliance and risk management.
For example, the Currency Observer Office (OCC) is expected to determine guidelines that address these issues, while the Treasury will need to evaluate the organizational frameworks of the coexist currencies in foreign dollars in accordance with the standards of the United States.
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