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Jane Fraser Confirms Citi Stablecoin Plans As Rules Ease Under Trump
Citigroup CEO Jane Fraser has confirmed the bank’s plans to issue its own stablecoin, marking a significant shift towards embracing blockchain technology. This decision comes as the rules and regulations surrounding cryptocurrencies ease under the current administration.
The move is not an isolated incident, as other major banks such as JPMorgan, Bank of America, and Wells Fargo are also exploring similar initiatives. The trend indicates that big banks are rapidly shifting their focus towards blockchain-based systems.
Fraser attributed Citi’s decision to the Trump administration’s Genius Act, a bill designed to provide clear guidelines for stablecoin issuers. Additionally, the Federal Reserve has rolled back two previous rules requiring banks to obtain pre-approval before engaging with cryptocurrencies, thus reducing unnecessary delays and obstacles.
Stablecoins have gained immense traction in recent times, with a circulating supply of $11 billion and yield-bearing stablecoins accounting for 4.5% of the total. The data also highlights that over 109 million wallets worldwide are now utilizing stablecoins, as reported by FinanceMagnates . The prominent listing of Circle, a leading stablecoin issuer, earlier this year demonstrates the sector’s appeal to both retail and institutional investors.
This development marks a significant turning point in the evolution of traditional finance and blockchain technology. As Citi enters the stablecoin arena, there is a possibility that other banks may follow suit, further blurring the lines between these two industries.
Source: coinpedia.org
