OCC's Brooks Anticipates Mainstream of Self-Driving Banks on DeFi
iHodl.com
Main page News, US Market, US, Banking, Blockchain, DeFi
Hot topic
12 January
80 80

Self-driving financial institutions on decentralized finance (DeFi) will likely become mainstream sooner, than self-driving cars start to fly, the US Acting Comptroller of the Currency, Brian Brooks, wrote in the op-ed for the Financial Times.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

The DeFi banks can not only solve the problem of the best interest rates, but also "end discrimination" against certain borrowers.

"They [self-driving banks] could even eliminate the risk of fraud or corruption by no longer being run by humans at all," Brooks noted.

While "self-driving banks" on blockchain networks present opportunities, they also pose "the same challenges as autonomous vehicles," the US Acting Comptroller of the Currency emphasizes. He says that in case the technology accelerates withdrawal of depositors' assets, that rush could lead to liquidity risk compared with traditional banks.

OCC's Brooks Believes Banks Could Mint Stablecoins on Blockchains

The United States gradually moves towards digitization as the US Office of the Comptroller of the Currency recently allowed the US banks to run independent nodes and distributed networks as well as issue their own stablecoins. According to the watchdog, banks "may use new technologies, including INVNs and related stablecoins, to perform bank-permissible functions, such as payment activities."

US Legislators Introduce Bill that Will Require Stablecoins Issuers to Receive Bank Charters

In December last year, Brooks reassured that the US authorities would not ban bitcoin (EXANTE: Bitcoin). Brooks declined to answer strictly whether the US Department of the Treasury was going to tighten regulation regarding self-hosted crypto wallets or not. However, OCC's head emphasized that nobody is interested in banning technologies related to cryptocurrency transmission.

If you are looking for a crypto trading platform to trade your assets, visit Gozo.pro, a safe and reliable exchange.

Read also:
Please describe the error
Close