compared to other tokens like Bitcoin is the community that relies on it. One Bitcoin today is worth around 38540 euros, this is because there are people who appreciate and believe in the value of this currency. But when Tether Limited declared in 2019 that reserves covered only 74% of the tokens in circulation, Tether’s value on exchanges remained virtually unchanged. This is both for the validity of the collateral to which it is anchored, and for a clientele that has continued to purchase Tether in the secondary markets at one dollar per token. Despite this, to date Tether, or stablecoins in general, are rarely accepted for the purchase of goods.
There are various problems
From the security of digital wallets to the slowness of blockchains at the time of the transaction. A critical aspect concerns the stability of these cryptocurrencies: that of Tether was just a lucky event. A community that believes in them is not enough to avoid volatility, but financial reserves must be reliable and stable. This Singapore Phone Number List worries governments and central banks. Facebook, which created its Libra currency in 2019, is the example par excellence. The United States Senate, considering that the Libra Association could become the competitor par excellence in the banking world. Did not allow the project to be taken any further. It can be well understood that the fear of the banking system is well founded: there are 5 top stablecoins with a capitalization of over 5 billion (Tether, USDC, Binance USD, Dai and TerraUSD).
The Biden government is concerned about exponential growth
Pushing for more measures, given that rapid expansion always carries non-negligible risks. One of the main concerns concerns the transparency and quality of the collateral. Considering Malaysia WhatsApp Number List the high capitalization that these companies have. If doubt were to spread regarding the securities supporting these currencies. A “panic selling” effect would be triggered. Incurring a crisis that we know well in the financial market and beyond. Tether has already had to pay two penalties in 2021 for false declarations on the amount of assets that supported the tokens in circulation. USD Coins also appears to be under scrutiny as Coinbase, the transaction channel used. The years made conflicting statements regarding the nature of their reserves.
