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Tether Responds to Deutsche Bank’s Criticism of Stablecoins
In a recent development, Tether, the world’s largest stablecoin, has strongly rebuked Deutsche Bank’s statement questioning the sustainability of stablecoins and Tether’s solvency.
Deutsche Bank’s Research Findings
A research report by Deutsche Bank examined 334 currency pegs dating back to 1800, revealing that only 14% of them survived over time. The analysis extended to stablecoins, highlighting the potential risks associated with the asset class, including turbulence and de-pegging events.
- Stability Concerns: The research suggests that while some stablecoins may endure, a majority are at risk of failure due to operational opacity and susceptibility to speculative influences.
- Impact of TerraUSD Collapse: The collapse of TerraUSD had repercussions across the crypto market, underscoring the volatility and risks inherent in stablecoins.
Criticisms Directed at Tether
Deutsche Bank specifically targeted Tether, a prominent stablecoin, questioning its solvency and its practices in the crypto derivatives sector. The report warned of a potential ‘Tether peso moment’ that could lead to significant losses and disrupt the entire crypto ecosystem.
- Regulatory Concerns: The report emphasized the necessity for enhanced transparency and regulation in the cryptocurrency market to mitigate risks associated with stablecoins.
- Consumer Sentiment: A consumer survey conducted by Deutsche Bank revealed mixed sentiments towards stablecoins, with only 18% of respondents expecting them to thrive.
Tether’s Response
Tether responded to Deutsche Bank’s critique by dismissing the research as lacking clarity and empirical evidence. The stablecoin issuer argued that the analysis failed to provide substantial data supporting its predictions of stablecoin decline.
“The research lacks concrete evidence and relies on vague assertions rather than rigorous analysis,” Tether stated in response to Deutsche Bank’s warnings.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
