Tether CEO Paolo Ardoino said stablecoins are a more credible form of money than tokenized bank deposits, arguing that stablecoins are almost fully backed by U.S. Treasuries while tokenized deposits are typically supported by only 10% in liquid assets. His remarks push back against comments from Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos, who said stablecoins face problems tied to redemption capacity, supply, interoperability and the facilitation of crime. De Cos said tokenized bank deposits offer a more direct route to using tokenization while preserving the foundations of the monetary system. Ardoino also said USDT’s market capitalization has exceeded $183 billion and that the token is used in some emerging markets for domestic and cross-border commerce. The debate comes as discussions around the CLARITY Act include concerns from banks that allowing crypto exchanges to offer rewards on stablecoins could trigger deposit migration.
Tether CEO Paolo Ardoino said stablecoins are a more credible form of money than tokenized bank deposits, arguing that the former are almost fully backed by U.S. Treasuries while the latter are typically supported by only 10% in liquid assets.
His comments respond to remarks from Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos, who said stablecoins raise issues involving redemption capacity, supply, interoperability and the facilitation of crime. He added that tokenized bank deposits represent a more direct path to applying tokenization while preserving the foundations of the monetary system.
Ardoino also said USDT’s market capitalization has surpassed $183 billion and that it is being used in some emerging markets for domestic and cross-border business.
Separately, in discussions around the Digital Asset Market Clarity Act, banks have expressed concern that allowing crypto exchanges to offer rewards on stablecoins could lead to deposit migration, according to Bitcoin.com News.
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