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

Odaily Planet Daily News: Tether CEO Paolo Ardoino stated that stablecoins are a more credible form of money than tokenized bank deposits, with the former nearly fully backed by U.S. Treasuries, while the latter typically holds only 10% in liquid assets.

Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos stated that stablecoins face issues such as redemption capacity, supply, interoperability, and facilitating criminal activity, and described tokenized bank deposits as a more direct path that preserves the foundation 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. Amid discussions surrounding the Clarity for Digital Assets Market Act (CLARITY Act), banks are concerned that allowing crypto exchanges to offer rewards on stablecoins could trigger deposit outflows. (Bitcoin.com News)