Banks are rapidly pivoting away from past practices of shunning crypto businesses to consider upgrading their payments infrastructure using stablecoins, eyeing them as the next frontier for payment innovation.
Opinion by: Megan Knab, CEO, Franklin Payroll
There are few historical examples of such a massive about-face for an industry, from banks debanking crypto businesses to now embracing stablecoins. If you talk to most crypto startup founders or companies with crypto on the balance sheet, they will all have war stories about finding, applying for and maintaining bank accounts.
Over the past three years, over half of debanking complaints have been lodged against four American banks — Bank of America, JPMorgan, Wells Fargo and Citibank. Now, as the policies that discriminated against the crypto industry, like “Operation Chokepoint 2.0” and the recision of controversial accounting rule SAB 121, have been repealed, a new openness to blockchain technology from the finance sector is possible.
