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IPFS News Link • Cyberspace and the New Economy

US Federal Regulator Says Banks Can Conduct Payments Using Stablecoins

• by Nikhilesh De

The federal banking regulator published an interpretive letter addressing whether national banks and federal savings associations could participate in independent node verification networks (INVNs, otherwise known as blockchain networks) or use stablecoins. The letter said these financial institutions can participate as nodes on a blockchain and store or validate payments. 

Any banks that do participate in an INVN must be aware of the operational, compliance or fraud risks when doing so, an OCC press release warned. 

Still, the OCC said INVNs "may be more resilient than other payment networks" due to the large number of nodes needed to verify transactions, which can, in turn, limit tampering.

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