- While the US government is switching to pro-Crypto policy, traditional finances are preparing for change.
- CEO of Bank of America has proposed a potential stablecoin as soon as there is a legal clarity.
During the past year, the adoption of crypto in all states, governments and traditional finances increased. With a pro-Crypto government in the US, various traditional companies centered on finance are committed to entering the crypto race.
The newest company to indicate such a movement is Bank of America, where the CEO reveals plans to launch a stablecoin.
Bank of America launching Stablecoin
According to CEO of Bank of America Brian MoynihanThe bank is preparing to launch its stablecoin as soon as there are regulations that make it possible.
During his speech at the Washington DC economic club, Moynihan revealed that the bank is interested in participating in the fast-growing crypto room. However, he noticed that the company is waiting for legal and regulatory clarity.
He noticed that
“It is clear that there will be a stablecoin if it is legal.”
Moynihan also noted that a Dollar-Pegged-Stablecoin issued by the bank will have different applications and applicability for daily activities.
The bank wants to use the same framework that it used when it became the first to launch a mobile bank app, which was a success with more than forty million users.
However, Moynihan noted that the exact role that the Stablecoin can play in payments remains unclear. This means that the bank still has to determine how to use Stablecoins in his traditional financial attitude.
Despite this lack of clarity, the announcement by the Bank of America, with more than $ 3.3 trillion in assets, is an important development in the crypto industry. If the Bank adopts Stablecoins, other banks can follow, leading to a banking revolution.
This revolution can also create more space for the adoption and growth of crypto.
Pro Crypto policy and Stablecoins regulations
With Moynihan who reveals his plans for the entrance to the bank, the ball is now only left to legislators. Legal clarity is needed for banks to enter the space.
Various accounts were considered by the American congress, including the ‘Genius Act’ and the ‘Stable Act’. These regulations will draw up Dollar-Pegged crypto assets such as USDT and USDC.
However, there is still a long way to go before these accounts are approved and are set for signature by the president.
What it means for the cryptomarket
Source: Coinglass
A possible entrance to the Bank of America will have a huge impact on the cryptomarket. Firstly, it will stimulate the Stablecoin market, which has undergone steady growth in recent years and has hit $ 231.7 billion.
This growth has reached Stablecoins such as USDT a market capitalization of $ 142.1 billion and USDC reaches $ 52.9 billion.
With the Stablecoin market capitalization, the entrance to another large player will push the market growth even further.
And this growth will also translate into a broader growth for the cryptocurrency market, because Stablecoins have become central to crypto transactions.