April 14, 2024

CEO of Texas United Bank Wants to Limit Issuance of Stablecoins to Banks

The United Texas Bank’s CEO, Scott Beck has recently talked about the issuance of the stablecoins by the banks, and how he wants them to be limited.

Scott Beck Proposes Policy to Leave Stablecoins

Scott Beck has developed a perception of stablecoins by talking about their uncertainties. Therefore, he has recently come up with a policy, recommending that only the banks must be allowed to issue stablecoins.

According to Scott Beck, cryptocurrency firms must not have the ability to issue stablecoins. The legal right to issue dollar-pegged stablecoins must be given to the banks directly.

Beck shared his recommendation during a meeting that was called upon to address the blockchain working group’s members in the United States.

Friday ‘Blockchain Matters’ Meeting

It was during the ‘Blockchain Matters” conference among the Texas Work Group in Austin on Friday, that Scott Beck spoke his mind.

It was during the conference that he stated that it is a strong recommendation from his side to limit the issuance of stablecoins to the banks.

He openly talked about Circle, which is currently known for being a licensed stablecoin issuer. According to Beck, it shouldn’t be cryptocurrency firms like Circle who get to issue stablecoins but the banks.

Federal and State Standards

The CEO of United Texas Bank quoted a report from November, which suggested that insured depository institutional standards must be fulfilled by the stablecoin issuers.

According to the November report, the federally chartered and state banks must maintain insured depository institutional standards.

Stablecoins to be categorized as Currencies

According to Beck, if stablecoins are categorized as money, then the proper approach is to have the banks issue them. In terms of currency, the banks are the proper economic actors who must be responsible for the issuance and management of stablecoins.

It is the banks that have the legal framework and expertise in place to handle the issuance of currency and in this case, stablecoins.

The issue with the current stablecoin issuers is that they are not as regulated or streamlined as the traditional banking institutions.

Therefore, bank institutions can handle such matters with more care, responsibility, and legal transparency.

Enhanced Consumer Protection

Beck added that one of the major advantages of letting the banking institutions issue stablecoins would allow them to provide more consumer protection to the users.

Once consumer protection is enhanced, more people will feel safer interacting with stablecoins. This would help bring in more resources and capital to the stablecoin industry.

The economy will experience a great boost with the banks issuing stablecoins for the benefit of the cryptocurrency community.

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