Tether CEO argues stablecoins are more reliable than deposit tokens

Tether CEO Paolo Ardoino defended stablecoins against concerns from the Bank for International Settlements (BIS), stating that stablecoins are a more reliable form of money compared to deposit tokens that depend on fractional-reserve banking. Ardoino highlighted that stablecoins are fully backed by reserves like U.S. Treasuries, whereas deposit tokens typically maintain reserve ratios of around 10%. He emphasized that stablecoins have reserves that cover their entire issuance. Earlier, BIS General Manager Pablo Hernandez de Cos expressed that stablecoins are not well-suited for large-scale payments and should be limited to specific use cases, while deposit tokens are more appropriate for everyday transactions.

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