Tether, the world’s third-largest cryptocurrency by market cap and USD-backed stablecoin is once again in the limelight and controversy. This time it’s the economists and officials from the U.S. Federal Reserve who have raised serious concerns over Tether’s operations.
Investors are concerned that any loss of confidence in Tether can lead to a “black swan” kind of event severely impacting the crypto market. This could potentially have far-reaching implications potentially spilling over to other markets as well.
Last month, Eric Rosengren, the President of Boston Fed warned about Tether calling it greater financial risk. The USD-backed stablecoin has been at the center of controversy in the past for allegedly covering $850 million losses. Earlier this year, the New York attorney general’s office reached a settlement with Tether’s parent company Bitfinex wherein the latter ended up paying $18.5 million.
The Controversy Surrounding Tether
So what’s the real controversy sur
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