Really?
Discussion
Yes. That’s why that coin is spiking so high. Its value, besides the usual speculators, is basically being propped up by the big banks buying it up largely to use for this purpose.
What's the theory for how banks will use it if its dollar price is so volatile?
The banks use them for transfers within the bank (eg: you transfer money from your checking to your savings). So the dollar price doesn’t really matter since it is always being converted right back to dollars. It is more there to make a proper log of transactions with better security features than what the banks themselves could come up with on their own.
Oh, interesting.