#stablecoin
The Wall Street Journal reports that 33 major US banks, including JPMorgan & Bank of America, are in talks to collaborate and create a stablecoin.
The program is being developed in collaboration with Zelle's Early Warning Services and The Clearing House, but it is still in the planning stage at this stage, he said.
He also said that whether this project will actually happen will depend on regulations and market demand.
While this is being attempted, the U.S. Senate has introduced a proposal to discuss stablecoin regulation called the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins).
This law could include safeguards and anti-money laundering regulations.
However, the planned stablecoin will be backed by banks to compete with Tether (USDT) and the $USD Coin (USDC) stablecoin.
So what makes this Stablecoin different is- *-
- Unlike private stablecoins, it will be created with the infrastructure of banks, so there will be regulatory compliance.
-For blockchain payments, traders must be able to use this Stablecoin legally.
- Crypto payments will be more secure and reliable due to direct connections to banks.
Currently, the market cap of stablecoins has increased from $205B to $245B, with interest-bearing stablecoins reaching $11B.
But it's not all good things. There are also challenges. What kind?
- It will become difficult for banks to negotiate with each other.
- Must overcome regulatory constraints.
If this plan succeeds despite the challenges, the Stablecoin market could change.
It remains to be seen whether the banks' stablecoin will be stable.