The second-largest American bank, Bank of America, says it will launch a stablecoin once legislation allows it.
Speaking during an interview at the The Economic Club of Washington, D.C., on 25 February, the bank’s CEO Brian Moynihan said it is only a matter of time before the bank releases the stablecoin which depends on legislation.
Waiting for legislation
The crypto space has been under serious restrictions especially under the immediate past administration in the U.S. The SEC in particular was extremely strict, bringing the industry’s development to a halt.
With the coming of the current Donald Trump administration, the industry has seen a ray of hope as the president openly identified with the industry even during his campaign.
The space therefore remains hopeful that friendly legislation will soon be passed to allow for mainstream institutions to launch stablecoins, which is what Moynihan looks forward to. He said:
“It’s pretty clear that there’s going to be a stablecoin, which is going to be fully dollar-backed. If they make that legal, we will go into that business.”
While he isn’t positively disposed towards volatile digital assets like Bitcoin and Ethereum, he said stablecoins are distinct because they are like money market funds and closely resemble bank accounts.
Referring to the planned stablecoin known as “Bank of America Coin”, he said the question of what it will be used for will be “interesting.”
Following other examples
The Bank of America launching a stablecoin will be great, but it won’t be the first mainstream business to launch a stablecoin.
PayPal launched its own stablecoin last year, which is now used for daily transactions from the PayPal app with thousands of merchants.
Crypto giant Ripple also got approved recently to roll out its own stablecoin known as RLUSD, which is used to facilitate cheap and fast cross-border payments.
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