Today In Digital-First Banking: OCC OKs Stablecoins, INVNs For Banks; States Sue Banking Watchdog Over ‘True Lender’ Regulation
In today’s top news in digital-first banking, the Office of the Comptroller of Currency (OCC) has OK’d independent node verification networks (INVNs) and stablecoins for federal banks, while multiple states are suing a banking watchdog over the “true lender” regulation. Plus, two-thirds of the second round of stimulus payments have reportedly reached bank accounts.
The OCC has stated that federal savings associations, as well as national banks, can take part in INVNs and harness stablecoins for payments. The OCC said that utilizing INVNs can bolster the stability and efficiency of payments and provide the same real-time payment upsides as seen in other nations.
Washington, D.C. joined a number of states in suing a bank watchdog over a regulation they are worried can encourage predatory lending. The complaint against the OCC, which was filed in federal court, centers around the “True Lender Rule.” That rule was meant to determine when a bank is the “true lender” in debts originated in one state and sold off in a different one.
The Treasury Department has reportedly digitally distributed two-thirds of round two of individual stimulus checks, or more than $112 billion in payments. The payments come as part of the $900 billion assistance bill ratified at the conclusion of December, 2020, which also encompassed funds to go for help for joblessness and small companies.
The worldwide economy is expected to grow at 4 percent in 2021, assuming that the coronavirus vaccines are broadly rolled out per the World Bank’s January 2021 Global Economic Prospects. In the event that virus cases keep accelerating and the vaccine is delayed, however, global growth could be restricted to 1.6 percent in 2021.