Following the launch of Taiwan's first Bitcoin ETF fund, Fubon Bank Podcast: The passage of the stablecoin bill is favourable information for the banking industry.

With the signing of the "GENIUS Act" for Innovation and Regulation of U.S. Stablecoins, TradFi is also paying more attention to stablecoins. Recently, the Taipei Fubon Bank's podcast "Fubon's Financial Weekly" featured the topic "Stablecoins Take Center Stage, Officially Entering the Mainstream Financial System," introducing stablecoins and the stablecoin legislation to its audience. Unlike the stance of the American Bankers Association, the Taipei Fubon Bank program stated that the passage of the stablecoin legislation is akin to allowing the banking industry to board the high-speed rise train, making the banking industry the biggest beneficiary of the stablecoin legislation.

(The American banking industry calls for a pause in approving trust bank licenses for cryptocurrency companies: Fear of shaking financial stability)

Stablecoins enter the sight of TradFi in Taiwan, with banks gaining deeper understanding of on-chain.

In this episode, the lecturer Yirong explains: A stablecoin is a type of digital currency whose value is pegged to a fiat currency (, such as the US dollar ), or specific assets (, such as gold ). Its role is to provide a stable medium of exchange, a tool for value storage, and a bridge for exchanges between assets in the highly volatile cryptocurrency ecosystem. In response, the host also expressed that it is really hard to imagine that the virtual currency industry has really passed the "GENIUS Act" under the support of the Senate.

The speaker then further explained the purpose of stablecoins and the "U.S. Stablecoin Innovation and Regulation Act". She explained that stablecoins are created for everyday transactions, retail finance, and enterprise use, while the Act aims to establish a compliance infrastructure for stablecoins. The Act allows banks, fintech companies, and large e-commerce businesses to legally issue stablecoins.

Fubon Bank Podcast: The Stablecoin Bill is Positive for the Banking Industry

The speaker mentioned that stablecoins are widely used in decentralized finance (DeFi), NFT trading, cross-border payments, and on-chain lending, indicating that the understanding of cryptocurrency among TradFi professionals is gradually moving on-chain. The host stated that the stablecoin market size has exceeded 200 billion USD. Which industries will benefit from the passage of the Genius Act?

The lecturer stated that under clear regulatory guidelines, banks are allowed to enter the stablecoin market to manage and issue stablecoins. Banks like Bank of America, Citibank, and Wells Fargo are already sharpening their knives. For banks, this also brings new revenue from management, trading, foreign exchange, and more, and stablecoins enable instant transaction settlements, significantly enhancing the speed of cross-border payments for banks while reducing costs. Additionally, they do not have to pay for federal deposit insurance or interest, so there will be no loss of bank deposits. In a high interest rate environment, banks acting as stablecoin issuers can also obtain stable returns from their asset reserves.

The instructor mentioned in the program that the passage of the stablecoin bill allows the banking industry to ride the high-speed rise, and stablecoin businesses can inject diversified revenue sources into banks, reduce processing costs, and provide benefits. Therefore, the future performance of the financial industry can be viewed positively.

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This article continues to introduce Taiwan's first Bitcoin ETF fund. Fubon Bank Podcast: The stablecoin bill's passage is beneficial for the banking industry. First appeared in Chain News ABMedia.