Tether CEO Questions BIS Push for Tokenized Bank Deposits, Says Stablecoins Are Nearly Fully Backed by U.S. Treasuries

Odaily News: Tether CEO Paolo Ardoino stated that stablecoins are a more credible form of money than tokenized bank deposits, as the former are almost fully backed by U.S. Treasuries, while the latter typically have only 10% liquidity asset backing.

Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos said that stablecoins raise issues such as redemption capacity, supply, interoperability, and facilitation of criminal activity, adding that tokenized bank deposits represent a more direct path to preserving the foundations of the monetary system while leveraging tokenization.

Ardoino noted that USDT's market cap has exceeded $183 billion and is used in some emerging markets for domestic and cross-border commerce. In discussions surrounding the CLARITY Act, banks have expressed concerns that allowing crypto exchanges to offer rewards on stablecoins could trigger deposit outflows. (Bitcoin.com News)