- Itaú Bank Eyes Stablecoin Launch, Awaits Regulatory Approval
- Itaú Supports Self-Custody Stablecoins with Legal Frameworks
Itaú, the largest bank in Brazil, is looking into the possibility of launching its stablecoin. This decision is dependent on the regulatory environment in Brazil and the experiences of U.S. banks with their stablecoins. Stablecoins gained traction when U.S. President Donald Trump decided against issuing a central bank digital currency (CBDC) and instead prioritized private stablecoins. The financial market transformation leads Itaú to focus on this changing industry pattern.
Itaú Bank Monitors Global Stablecoin Launches, Plans Own Project
Guto Antunes, who leads Itaú Bank’s digital assets team, explained stablecoins have always been under active consideration by their organization. Blockchain technology presents opportunities to streamline financial settlement processes; therefore, the bank monitors stablecoin developments for this reason. The Brazilian Central Bank made its regulatory stance on such assets clearer through its public consultation focused on stablecoins, according to Antunes.
The stablecoin market in Brazil experienced rapid growth, as per reports which showed stablecoins composing 90% of all cryptocurrency deals. Brazil’s Central Bank president Gabriel Galipolo stated that stablecoins continue to expand into payment systems while stressing that stablecoins raise regulatory problems because of difficulties managing taxation and stopping money laundering operations.
Cryptocurrencies referred to as stablecoins connect to established financial currencies including the U.S. dollar. The stable value of these coins is maintained through holding secure assets as example, U.S. Treasury bonds. The market capitalization of USDT and USDC stablecoins exceeds $200 billion as they represent the largest coins currently available.
Several international corporations now develop their stablecoins as part of ongoing experimental activities. PayPal rolled out its stablecoin during 2023 while Fidelity engaged in stablecoin testing in the same year. The bank watches all ongoing developments carefully as it prepares to launch its stablecoin project.
Itaú Supports Self-Custody Stablecoins with Legal Safeguards
The launch of Itaú’s stablecoin requires clear regulatory frameworks so Antunes maintains the position that the bank needs to be cautious. Antunes stressed that the bank should understand current regulations and their future development since it requires this knowledge for moving forward. While stablecoins have already gained some usability in the market, he believes that a clear understanding of the regulatory framework is essential.
Furthermore, the Brazilian government official Antunes endorsed the concept of secure stablecoin management by individuals with the caveat that Brazil’s pending regulatory framework might impose limitations on this practice. The system he proposed focuses on establishing an approved registry of self-custody options to maintain innovation alongside illegal activity prevention measures.
The Brazilian government investigates plans to incorporate Bitcoin as an element for its national foreign reserves. Brazilian chief of staff Pedro Giocondo Guerra declared his backing of implementing Bitcoin into foreign reserves by describing it as “the gold of the internet.” According to him, Bitcoin acts as a potential investment opportunity for national wealth security. The Brazilian parliamentarian Eros Biondini proposed to reinvest up to 5% of Brazil’s international currency stock into Bitcoin.
Itaú demonstrates its interest in emerging technologies through its potential entry into the stablecoin market. The institution exercises caution because it needs additional regulatory directions. Brazil demonstrates an active engagement in Bitcoin as part of its economic policy-making together with its financial strategy.
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