Crypto Exchange FTX Offers $1mln Reward for Banks Willing to Deal with Stablecoins
In return for a $1 million incentive, the cryptocurrency derivatives exchange FTX is trying to persuade banks to contact them and explore the potential of adopting stablecoins.Through a Tweet Tuesday, FTX said that it was looking at developing partnerships with banks in various countries to enable users to make “almost real-time and nearly commission freen deposits and withdrawals” using stablecoins in exchange for fiat currency.
The cryptocurrency exchange has pitched the notion of awarding a $1 million reward to the foremost bank in each zone to embrace the stablecoins, but has suggested that it is open to give much more money in the future.
The appeal to FTX’s over 350,000 Twitter platform followers has come after the exchange’s CEO, Sam Bankman-Fried (SBF), stated that further regulatory clarification was required for the cryptocurrency market — notably stablecoins — to progress as a whole.
“reporting/transparency/auditing based infrastructure” to validate how stablecoins are supported, as per the CEO, will “address 80% of the concerns while enabling stablecoins to flourish domestically.”
In its appeal for a stablecoin deal, FTX stated that it planned to talk to a broad range of stakeholders, which includes no only US based banks but also credit unions. The crypto exchange is registered in Antigua and Barbuda and has its headquarters in The Bahamas. However, it also runs the FTX US exchange for customers in the United States of America.
How much would it cost to convince a bank to accept stablecoins?
If we offered a $1m prize for the first bank in each region that does it is that enough?
Do you work for a bank and want to discuss this?
— FTX – Built By Traders, For Traders (@FTX_Official) December 28, 2021
‘We’ve just taken over a bank, so this is a nice idea,’ stated Oliver von Landsberg-Sadie, CEO of the BCB Group, headquartered in London. “We do not require a reward since you are our customer, and in the years ahead, we all benefit.”
Stablecoins have garnered considerable attention in 2021, with the President’s Working Group on Financial Markets publishing a paper in November stating that issuers should undergo “proper regulatory monitoring” equivalent to the one banks are subject to. New regulation impacting the stablecoins has also been suggested by Nellie Liang, the Undersecretary of the Treasury for Domestic Finance.