Friday, 07 August 2020
Sovrano

Abra CEO says stablecoins will be rockin

As you all know, Abra supports a whole bunch of stablecoins: Tether, True USD, Paxos, USDC, Dai and others.
These stablecoins will account for about $500 Billion in crypto transaction volume in 2020 according to Messari. Abra estimates there are over $12 Billion in stablecoins in circulation today. Tether still commands the majority of the market but all of the USD backed coins are showing strong growth.

I believe that stablecoins will start to compete with traditional banking in three areas in the next 12 months:

Lending – stablecoins are ideal for cross border lending and adding credit balances to debit cards via p2p loans

Merchant payment
– expect to see the major card networks and other payment processors start to dabble in stablecoin based merchant settlement. Removing the banks from this flow will save everyone (except the banks) a lot of money.

Money transfer & remittances
– Libra (via Facebook) was built on the premise that stablecoins and crypto could fix money transfer. Many crypto companies have their sights set on this problem.


Feds allow US banks to hold crypto

We had some breaking news come in just as we were about to go to press with our newsletter. The US Treasury Department oversees the issuance of national bank charters in the United States. The specific group within Treasury that issues these charters and oversees banks is the ominous sounding OCC or Office of the Comptroller of the Currency. Today the OCC clarified in a public letter that national banks have the authority to provide fiat bank accounts and cryptocurrency custodial services to cryptocurrency businesses. That is a very big deal indeed.

The implications of this are far reaching. That means that Abra could in theory become a nationally chartered bank in the US. It also means that existing national banks could eventually compete with Abra. Welcome to the party banks!


source: abra.com

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