The serious, potentially fatal flaw with a stablecoin like Tether is the potential for a “run on the bank.” Any stablecoin that invests in anything other than U.S. dollars in a bank account cannot assure its holders that they can redeem their stablecoin at any time, all at once, and receive 100% of the face value of the stablecoin.
Related posts
-
Scammers Trick Crypto Users With Faked USDT Balances, Slowmist Reports
Slowmist, teaming up with Imtoken, has exposed a new... -
Crypto market cap hovers $2.45t as Bitcoin, Solana, Ethereum, Dogecoin face downward pressure
Digital assets continue to struggle as the crypto market cap dips 1.28%. It currently hovers at... -
DTCC withdraws collateral, loan support for crypto ETFs
Financial services firm Depository Trust and Clearing Corporation (DTCC) has announced it will not allocate any...