Tether CEO questions BIS push for tokenized bank deposits, says stablecoins are almost fully backed by U.S. Treasuries

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

Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos said that stablecoins pose issues regarding redeemability, supply, interoperability, and facilitating crime, and argued that tokenized bank deposits are a more direct path to preserving the foundations of the monetary system while leveraging tokenization.

Ardoino noted that USDT's market cap has surpassed $183 billion and is used in some emerging markets for domestic and cross-border commerce. In discussions around the Clarity for Digital Assets Market Transparency Act (CLARITY Act), banks are concerned that allowing crypto exchanges to offer rewards on stablecoins could trigger deposit outflows. (Bitcoin.com News)