Tether officials addressed the media today regarding the contentious stablecoin. Tether is expected to disclose long-awaited audits in the coming months, according to them.
It has been hesitant to share data with authorities in the past. Tether, the third most valuable digital asset by market capitalization, has promised to disclose its audits for years but has failed to do so.
Tether’s Audit Comes, Finally
Tether’s chief counsel, Stu Hoegner, told CNBC today that an audit is “in the works” and would be completed in “months, not years.”
Tether is a stablecoin that is linked to the US dollar at a 1:1 ratio. In contrast to the value of cryptocurrencies like Bitcoin, the USDT coin’s worth remains constant.
Tether Inc, the firm behind Tether, says that its currencies are backed by approximately 80% of US dollars held in reserves, cash equivalents, bonds, secured loans, and other assets.
well…more questions than answers on #tether
they say an audit (not attestation) is *months* away. we look forward to it and hope to have you back
— Deirdre Bosa (@dee_bosa) July 21, 2021
The currency is the backbone of the crypto economy due to its massive trading volume: $52.9 billion worth of the currency was exchanged in the last 24 hours.
The asset is driving the crypto industry in Asia since it allows traders to access Bitcoin. It is said to be helpful for Chinese capital movement as well.
Ongoing Problems with Tether
The main problem with Tether is that some people don’t think it’s backed by genuine US money. Professor John Griffin of the University of Texas said in a 2018 research report that Tether is used to influence the Bitcoin market. Griffin followed up with a similar study in late 2019, but other scholars have questioned its results.
In a similar incident, Paxos, a competitor stablecoin firm, slammed Tether and Circle in a blog post on Wednesday, saying that they are “not fully supervised by any financial authorities.”
“Neither USDC nor Tether is a regulated digital asset, for the simple reason that neither token has a regulator. In fact, neither USDC nor Tether tokens are ‘stablecoins’ in anything other than name.”
Paxos stated that cash or cash equivalents account for 96% of their stablecoin reserves.
What is Tether?
Tether is a stable currency that is pegged to the US dollar 1:1. Tether is managed by Tether Keeping Limited, which is also known as Tether Restricted. The CEO is JL Van Der Velde, the CFO is Giancarlo Devasini, and the General Counsel is Suart Hoegner.
Tether was originally launched by the team behind Bitfinex, a worldwide cryptocurrency exchange.
Tether was uses Omni Layer, a Bitcoin network transport protocol. Tether’s first iteration is characterized by the blockchain network’s inherent dependability and security.
To encourage adoption, Tether was launched as an ERC20 currency on the Ethereum network in September 2017. Tether’s Ethereum ERC-20 token is currently the most widely used Tether token.