Questions have begun to increase about stable cryptocurrencies recently. Which is one of the most important types of digital currencies at present. Tether is the most prominent stablecoin.
These currencies have aroused the interest of all digital currency followers. On August 9, 2021, the currency provided certificates regarding its financial reserves.
Despite the currency’s efforts to improve its conditions, some believe that it was established solely to maintain the rise in the value of Bitcoin.
The New York City Attorney General has also investigated this coin. This resulted in Tether being banned from operating in New York, which is the most important financial and economic city in the United States.
Stable cryptocurrencies or StableCoins
Tether is the most popular stablecoin, but it is not the only one. Fears about stable cryptocurrencies are not only centered around Tether but also around this type of cryptocurrency in general.
The main goal is to protect investors and their money from fraud.
The US Treasury Secretary met with the President’s Task Force on Financial Markets to mainly discuss stable cryptocurrencies.
There are no specific laws explaining how to disclose assets owned by stable currencies. This made it a target for legislators and lawmakers, especially within the United States of America.
What are stablecoins?
Stablecoins are known by this name because they are tied to real assets. These assets are stable. An example of this is monetary assets such as the dollar or the euro.
The peg of these currencies to real assets makes them less volatile than currencies that do not have any monetary basis, such as Bitcoin and Ethereum. Therefore, any stable cryptocurrency is a currency tied to a real asset that preserves its value.
Perhaps what is strange about stable currencies is that they may be centralized in some cases. For example, when $600 million was stolen from PolyNetwork, $33 million worth of Tether coins were frozen. The hacker could not benefit from it in any way.
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 has very low transfer and payment commissions, which do not exceed $1 in most cases.
