With the signing of the 'U.S. Stablecoin Innovation and Regulation Act' (GENIUS Act), traditional finance is also paying more attention to stablecoins. Recently, Taipei Fubon Bank's podcast, 'Fubon Financial Weekly', titled 'Stablecoins enter the mainstream financial system', introduced stablecoins and the stablecoin bill to the audience. Unlike the attitude of the American Bankers Association, the Taipei Fubon Bank program indicated that the passage of the stablecoin bill is like allowing the banking industry to board a high-speed growth train, making the banking industry the biggest beneficiary of the stablecoin bill's passage.
Stablecoins enter the traditional financial perspective in Taiwan, with banks' understanding deepening on-chain
In this episode, the speaker Yirong explained: Stablecoins are a type of digital currency, pegged to fiat currencies (such as USD) or specific assets (such as gold). Their role is to provide a stable medium of exchange, a tool for value storage, and a bridge for exchanging between assets in the volatile cryptocurrency ecosystem. The host also expressed that it's hard to imagine that the virtual currency industry has really passed under the Senate's support (GENIUS Act).
The speaker further explained the purpose of stablecoins and the 'U.S. Stablecoin Innovation and Regulation Act'. She explained that stablecoins are created for everyday transactions, retail finance, and corporate use, while the genius bill aims to establish a compliance infrastructure for stablecoins. The bill allows banks, fintech companies, and large e-commerce platforms to legally issue stablecoins.
Fubon Bank Podcast: The stablecoin bill is beneficial for the banking industry
The speaker mentioned that stablecoins are widely used in decentralized finance (DeFi), NFT trading, cross-border payments, and on-chain lending, showing that traditional financial professionals' understanding of cryptocurrencies is gradually moving on-chain. The host noted that the stablecoin market has exceeded 200 billion USD; which industries benefit from the passage of the genius bill?
The speaker stated that under clear regulatory guidelines, banks are allowed to enter the stablecoin market, managing and issuing stablecoins. Banks like Bank of America, Citibank, and Wells Fargo are already sharpening their tools. For banks, this also adds new income from management, trading, and currency exchange, and stablecoins enable immediate transaction settlement, significantly enhancing the speed of banks' cross-border payments and reducing costs. Additionally, there is no need to pay federal deposit insurance or interest, so it won't lead to a loss of bank deposits. In a high-interest-rate environment, banks acting as stablecoin issuers can also gain stable returns from their asset reserves.
In the program, the speaker mentioned that the passage of the stablecoin bill allows the banking industry to board a high-speed growth train, and stablecoin business can inject diversified revenue sources into banks, lowering processing costs and providing benefits, thus allowing for a positive outlook on the financial industry's future performance.
Further Reading
Taiwan's first! Fubon’s new fund includes Bitcoin ETF, which is better: indirect or direct holdings
This article is authorized for reproduction from: (Chain News)
Original Title: (Following the launch of Taiwan's first Bitcoin ETF fund, Fubon Bank Podcast: The stablecoin bill's passage is beneficial for the banking industry)
Original Author: Neo
The article 'Promoting Taiwan's first Bitcoin ETF fund! Fubon Podcast: The stablecoin bill is beneficial for the banking industry' was first published on 'Crypto City'
