It is a thorn in the side of lawmakers worldwide: stablecoins like Tether. Earlier I wrote about the importance of this within the global financial and cryptocurrency systems. Due to their rapidly increasing size, according to several governments, they could actually endanger the global financial system.Credit rating agency Fitch warned this month Bolivia Phone Number List that the rapid growth of stablecoins could have “destabilizing effects” on short-term credit markets. The global Financial Action Task Force (FATF) recently warned about the huge increase in money laundering. And the Bank for International Settlements wrote in its most recent report that they see no value in it at all.
While the coins imply bringing stability, the largest stablecoin, Tether, has been in the news on a continuous basis lately. Many Bolivia Phone Number List people assume that stablecoins are ‘pegged’: 1-1 backed by another asset. So for every Tether in circulation, there would be a dollar stored somewhere. This coin is now worth more than $70 billion. And after great international pressure, it turned out that the company behind Tether had a very strange mix of assets to cover all this money on its balance sheet.
on the chain
As a result, the company had to pay a Bolivia Phone Number List fine to the American government and the same government has now urgently developed a framework to severely restrict stablecoins, such as Tether. Trade exchanges such as Bitcoinmeester have already taken the coin offline . It’s not just about Tether, though. There are dozens of stablecoins in circulation and the big wait is still for the stablecoin that shook up many governments: Diem, initiated by Facebook.