OCC opens the doors of banks to embrace Blockchain, encryption

In a clarification, the Currency Financial Office (OCC) confirmed that various encryption activities are approved within the federal banking system.

This is much more important than most people realize and have the ability to transform the game. Widely, and OCC Resolution It includes:

• Banks now have the ability to custody of encryption assets: This paves the way for traditional financial institutions to store digital assets for their customers. It also represents a major transformation in institutional adoption, after the success of the traded investment funds.
• Stablecoins can be used for regular transactions: Under this, financial institutions are now authorized to use Blockchain and Stablecoins networks for payment. This confirms technology at the federal level.
• Public Blockchains is legitimate: OCC officially recognizes public Blockchain networks as a legal financial infrastructure. This is important for the ecosystem of the entire digital assets.
• Financial institutions are allowed to operate the contract: Financial institutions are now granted permission to manage the Blockchain contract and participate in the network consensus. This greatly enhances the health of cryptocurrencies.
• Smart contracts have been declared: Financial institutions can employ smart contracts for operating transactions, which facilitate automatic and automatic banking services.

The explanation was read, “The published explanatory message 1183 to confirm that the custody of encrypted assets, certain activities of Stablecoin, and participating in the independent node verification networks such as the distributor’s book are allowed for national banks and federal savings societies.

“The message also cancels the condition of the institutions that are supervised by OCC to receive no supervisory exposure and prove that they have sufficient control elements before they can participate in these encrypted currency activities,” the OCC statement added.

Rodney said. Hood, Acting of the currency financial observer, “you expect banks will have the same controls for strong risk management to support new bank activities as they do with traditional activities.”

He added that the decision “will reduce the burden of banks to engage in encryption activities and ensure that these banking activities are constantly dealt with by OCC, regardless of basic technology. I will continue to work hard to ensure that the regulations are effective and not excessive, while maintaining a strong strong banking system.”

Analysts said that Occ’s decision is one of the most organizational developments it noted in the world of digital assets.

The effects of the statement are great. Changes will help expand popular acceptance, enhance encryption nursery solutions, enhance banking services, integration of encryption, and promote institutional adoption.

This extends beyond banks only entering the world of encryption. This indicates the pivotal progress in the basic development of the global financial system.