Stablecoins: The Future of Financial Transactions?
The U.S. has established its first rules for stablecoins through the GENIUS Act, sparking interest in dollar-backed crypto tokens among major financial companies. This move opens new payment avenues but also presents challenges in strategy and compliance. Experts suggest careful consideration in issuing stablecoins.
Financial giants, from Bank of America to Fiserv, are gearing up to launch dollar-backed crypto tokens following the adoption of the first-ever U.S. regulations for stablecoins, though experts warn the journey won't be straightforward.
On July 18, former U.S. President Donald Trump signed the GENIUS Act, setting federal guidelines for stablecoins—cryptocurrency tokens pegged to the U.S. dollar—potentially making them a standard payment method. Interest in stablecoins, known for maintaining a constant value, has surged among traders shifting funds between cryptocurrencies such as Bitcoin and Ether.
Now, numerous companies are exploring stablecoin strategies to capitalize on instant payment benefits. Long-standing banking systems often require days for domestic payments or even longer for international transfers. Among the notable names considering stablecoins are giants like Walmart and Amazon. However, the new law doesn't offer a swift gateway; experts indicate it demands thorough strategic and technical planning before firms implement their stablecoin solutions.
(With inputs from agencies.)
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