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Questions about stable cryptocurrencies have started to increase in recent times. It is one of the most important types of digital currency today, and Tether is the most important stablecoin.
These coins have aroused the interest of all crypto enthusiasts. Tether has also been described as a systemic risk capable of threatening the entire cryptocurrency space. On August 9, the currency issued certificates regarding its financial reserves.
Despite the currency’s efforts to improve conditions, some believe it was created only to keep Bitcoin’s value high, and the New York City attorney has been investigating this currency. As a result, Tether was banned from operating in New York, the most important financial and economic city in the United States.
Tether is the most popular stablecoin, but it’s not the only one. Concerns about stablecoins are not just about the controversial Tether, but this type of cryptocurrency in general, according to the Arab Tech News Portal.
The head of the United States Securities and Exchange Commission has officially called for more powers to regulate cryptocurrency laws. The main objective is to protect investors and their funds against fraud.
The Treasury Secretary met with the President’s Financial Markets Task Force to discuss mostly stable cryptocurrency issues.
There are no specific laws that explain how to disclose assets held by stablecoins, and this is what has made them a prime target for lawmakers and lawmakers, especially in the United States of America.
Stablecoins are known by this name because they are linked to real assets. These assets are stable in nature. An example is monetary assets such as the dollar or the euro.
The correlation of these currencies with real assets makes them less volatile than currencies that have no monetary base like Bitcoin or Ethereum, and therefore any stable cryptocurrency is a currency tied to a real asset that preserves its value.
What is perhaps strange about Stable Coins is that they can be centralized in some cases. For example, when $ 600 million was stolen from PolyNetwork, $ 33 million worth of Tether coins was frozen. The hacker could in no way profit from it.
Stable cryptocurrencies, led by Tether, can be described as real currencies but built on the blockchain just like other digital currencies.
These currencies are used for payments just like traditional money. Tether is characterized by very low transfer and payment commissions, which in most cases do not exceed a dollar.
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