Over the last couple years the questions seemed to have elevated & quickly at that. Some would say it has been prophecy and others simplified to just about time. Either way, The Office of the Comptroller of the Currency Just Elevated the Stakes.
When you look at news sources from around the world the U.S. Security and Exchange Commission (SEC), Federal Reserve and even the U.S. Treasury Department have been in the headlines. Now it is time for the true powerhouse to step forward and into the spotlight.
It may sound a little odd, but both in and outside the U.S. the O.C.C. is not typically the organization that really captures headlines and is fodder for conversation at all of the typical watering holes.
That being said, the Office of the Comptroller of the Currency is the adult in the room when it comes to what is happening with the national currency. While the SEC & IRS are focused on auditing and regulatory issues and the Treasury tends to drive the policy issues, the O.C.C. is the body where the decisions really hit the ground.
So it comes with trepidation and excited about the latest round of news that Federally Chartered Banks and Thrifts may participate in stablecoin node verification networks. Boom!
This news following the 2020 announcements of banks being able to operate in a custodial capacity is the opening of the floodgates in the author's opinion.
Over the last couple months the actions of countless institutions that are known about has been staggering. With tens of millions of transactions in Bitcoin taking place above $20k by large organization and holding companies, one must expect that something is afoot.
Whether it is a wealth transfer, fiat crumbling, or class transition event, the mere fact that federal chartered banks will now be able to participate in stablecoin environments has to lead a person to thinking about what that actually means.
Here are a couple of the author's opinions about what will happen next.
Whether it is the large purchases by Greyscale or index fund developments by Bitwise, the prospects of hedging against a fiat deflation seem closer rather than farther.
All expectations are that during a U.S. Presidential transition that COVID-19 continued stimulus will further prop up faux capitalist activities while insulating the general population from having a clear view of what is at stake at in the national economy.
Under this scenario the opportunity for institutional adoption from banking across multiple sectors seems imminent and in that light the public may be facing a transition to a digital currency environment over the next several years.
In addition to businesses and organizations engaging quickly, there appears to be two traunches of participants that would be part of a retail boom. First is the current cryptocurrency user base which has been lightly involved to expert navigators in this system.
With the skills developed to operate outside of the current banking paradigm, it appears this group has the biggest opportunity to realize windfall types of returns. In fact, when in history can it be said that the public has had the opportunity to enter an asset class before the larger institutions have had a chance to domineer from the start.
In addition, the second group on the retail side of this group will most likely enter through the likes of the current banking structure.
When retail purchases are engaging through PayPal, the CashApp, or even in their current banking provider, it would seem that once the current system has an on-ramp into the current cryptocurrency ecosystem there will be an increase.
Consumers will be able to realize the utility, capability, scalability among other benefits of entering this environment.
Big news like this latest update from the O.C.C. is never without areas for interpretation and clarification. Policy that is developed often is set in a way to reach the masses which also creates slivers or swaths of constituents who are left out.
In those situations, rules and other operating guidelines end up being developed or adjusted to address the different situations that arise.
What ever those look like over the upcoming year, one thing is for sure. The doors are open and the integration between instutional and retail engagement is happening.