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
-
Uniswap founder urges democrats to immediately change Biden’s approach to crypto
As Republicans “smell blood in the water,” Uniswap founder Hayden Adams says top-level officials close to... -
Mark Cuban Blasts SEC’s Crypto Regulation, Advocates for Japan’s Approach
Billionaire investor and “Shark Tank” star, Mark Cuban, has... -
Philippine Central Bank Approves Peso-Pegged Stablecoin for Faster Remittances
The Bangko Sentral ng Pilipinas, the central bank of...