Approval by OCC to employ blockchains make Cryptocurrencies leap

  • Power of OCC charters to regulate applications
  • Official letter published to authorise United State Banks
  • Significant 12% jump in Ether’s value
  • Networks supporting stablecoins observed a noticeable jump in their native tokens

The Office of the Comptroller of the Currency (OCC) utilised its power value to officially declare the provision for access to public blockchain networks by the United States banks. BlockHead Capital’s managing partner Justin Yashouafar stated that the whole integration of public blockchains into the conventional setup of the banking sector has led to a very positive response from the investors. 

Outcome of the letter in terms of attested figures

Ethereum has a very stable base as a predominant method of repayment negotiation. Immediately post the letter launch, its value leapt 12% virtually. On the other hand, Bitcoin witnessed a rise by 5%. This was a victorious move because it totally retraced the losses that Sunday night ushered. Bitcoin’s virtual accomplishment remains 13% virtually countering the final check of 2021, while  trading hands in excess of  $32,500. Ether’s value in the trading setup remains listed under $1,100.

Major highlights of the letter

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Organisations accredited to government cost savings and nationwide banks are two major institutions that the formal letter officially dealt with, hence implying direct outcomes on these two setups. It directs their involvements as nodes on a blockchain. The other assertive key point was their complicit effort in saving or backing the settlements which are created in stablecoins or indigenous electronic properties. The letter also directly represents a contrast to the last Congressional session’s expense that was presented. It basically proposed a provision which would have ensured a certain acquisition of financial institution charters by the stablecoin companies. It was condemned as an anti- stablecoin proposition. 

The Treasury Department had suggested an uplifted version of KNOW-YOUR-CUSTOMER (KYC) policies in mid December. It was directed to shift the holdings of United State cryptocurrency customers to their individual pockets from its association to an exchange.

Yashouafar’s final update claimed how the other diverse stablecoin-supporting networks did not react immediately to the news of the letter. Though Algorand still had a mild reaction, Solana was comparatively stagnant. The contrast is important to the favourable responses received from ether and bitcoin because Algorand and Solana are major sustaining mediums of biggest stablecoins: firstly, the secure (USDT) and second being the Circle’s USDC stablecoin. Instead, there were cost leaps witnessed from their indigenous symbols.

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Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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