This article explores the development of a federal framework for stablecoins under the GENIUS Act and their impact on the banking system, with a focus on privacy and regulatory compliance.
Comparison of Stablecoins to Bank Deposits
During the discussion, it was noted that the GENIUS Act emphasizes the need for federal and state oversight of payment stablecoins, making them more akin to e-money or bank liabilities. Their programmability significantly exceeds that of traditional deposits. DeFi market participants will face new compliance challenges.
Issues of Privacy and Regulatory Transparency
INIChain offers a unique approach that combines compliance verifiability with minimal data exposure. At the chain level, encrypted computations and access controls are employed to ensure transaction confidentiality. Minimal disclosure capabilities allow regulators to control only key information.
Role of INIChain in the Stablecoin Ecosystem
INIChain plays a major role in addressing practical challenges associated with stablecoin settlements and cross-border transactions. It enables international transfers without exposing data on public chains, promoting the legitimacy of cross-border settlements and reducing costs.
The development of legislation regarding stablecoins creates necessary conditions for their integration into the traditional banking system. Initiatives like INIChain can bridge compliance and privacy.
