Bank of America considers stablecoin regulation a boon to uptake

Is stablecoin regulation a good thing for the Bank of America?

For many months, stablecoin regulation is a big issue in the United States. Indeed, the American financial regulator seems to be interested closely in these cryptocurrencies replicating, in their vast majority, the rate of the dollar (USD).

So the Securities and Exchange Commission (SEC) has recently been appointed as the sole financial regulator of American stablecoins. In addition, certain provisions, such as assimilating the issuer of stablecoins to a bank, may cause concern in the sector.

However, the Bank of America wants to be much more optimistic. The second largest American bank considers, on the contrary, that the upcoming regulation of stablecoins will be a catalyst for their future mass adoption. With a capitalization already amounting to more than 140 billion dollars, this figure could therefore soar.

???? To read – United States: will an issuer of stablecoins be assimilated to a bank?

Regulatory uncertainty is a problem for Bank of America

The BoA specifies that it is not so much regulation that will help the adoption of stablecoins, but rather the end of uncertainty. Indeed, the designation of the SEC made it clear to many. As a result, US stablecoins could eventually become viable means of payment according to Bank of America.

Institutions are awaiting final regulation before increasing their exposure to digital assets and more particularly to stablecoins. They are also waiting for a regulatory framework allowing payment companies to integrate blockchain technology and stablecoins on their platforms.

Still according to the BoA, Mastercard, Visa and Western Union could see their market share and market capitalization increase thanks to stablecoins alone. This claim confirms the trend since Mastercard and Visa have already tested USDC for payments.

???? To read – Mastercard will test the USDC stablecoin to allow its customers to pay in cryptocurrency

The regulation of stablecoins remains a major issue in the United States

If the BoA’s cryptocurrency predictions are consistently positive, the fact remains that stablecoins are a real legal problem in the United States. On the one hand, there is the traditional opposition to cryptocurrencies, which rejects everything that revolves around Bitcoin (BTC) and the like. Hillary Clinton is a good example.

But, on the other hand, stablecoins pose another difficulty that particularly affects the United States. Indeed, the vast majority of stablecoins are cryptocurrencies following the dollar rate. However, in the long term, could these stablecoins compete with the venerable greenback? Some think so and not just anyone.

Lately it’s Christopher Waller, a governor of the central bank of the United States (Federal Reserve or Fed), who considered that a digital dollar was of no use since the stablecoins would already assume the role that would be assigned to it. A position that will clearly not be defended by Christine Lagarde to evoke the EURt in the face of the future digital euro.

Thus, a clear legal framework, a possibility of integrating stablecoins into the banking system or even the assimilation of issuers of stablecoins to banks would be a good thing for the BoA. It would nevertheless remain at resolving the thorny question of the reserves of the currently dominant stablecoins. However, it is known that Tether, the undisputed leader, remains in the eye of the cyclone of the SEC.

???? To go further – United States: a bill strongly threatens the development of stablecoins

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About the Author : Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. Today I am an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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