Stablecoins rose to popularity as a result of restrictions in the American financial system-especially the restricted banking hours and the absence of a non-USD trading pair, according to Gerald David, President of ARCA LABS.
“So we start thinking about the reason for this, we start talking about banking watches from nine to five years,” David said during a committee at Tokenizethis 2025 on April 16.
The discussion episode that focuses on returns, or mainly, revolves the high cryptocurrency that can generate the return through arrest, lending or lending, such as stablecoins.
David said: “Well, bank hours do not work from nine to five years, right?
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According to David, the need for Stablecoins stems from the fact that the traditional banking infrastructure in the United States does not support the clock transactions. “This industry, as we all know, is a 24 -hour industry.”
Kyc for Stablecoins
Know that your customer’s procedures were an important topic in the committee. One actor from Figure markets He said that everyone who owns Stablecoin carries the return should be Kyc-Ed for tax reasons.
But David indicated that Stablecoins has several cases of use that exceeds the generation of return, including payments. “Using a stable, stable code to buy a cup of coffee is not something that must really require a AML or Kyc for someone.”
Nick Carmi, EXCHANGE At Figure Markets, suggested that part of the solution can be a confidence -based KYC system that allows users to carry their accreditation data via platforms. KYC is a process used by financial institutions to verify the user identity. It is supposed to prevent fraud, money laundering and other illegal activities by ensuring that users are the ones who claim to be.
Users currently must complete the separate KYC checks for each institution or financial service they use, creating friction and friction – especially for those who move on multiple platforms or explore different ecosystems for encryption.
Magazine: Bitcoin payments are undermined by central stablecoins
