Tether CEO Fires Back at BIS Over Stablecoin vs Tokenized Deposits

Tether CEO Paolo Ardoino has fired back at the Bank for International Settlements (BIS) over its recent push for tokenized bank deposits. The BIS, led by General Manager Pablo Hernandez de Cos, claims that stablecoins are not a viable substitute for fiat money due to issues such as poor redeemability and supply problems.

In response, Ardoino argued that stablecoins are actually a more secure option than tokenized deposits, which he said are often only 10% collateralized by liquid assets. In contrast, Tether's $USDT is almost fully backed by U.S. Treasuries.

Ardoino also pointed out that many economies rely heavily on stablecoins like $USDT for both internal and foreign commerce. He warned that if people start to realize the safety and benefits of stablecoins over traditional bank deposits, it could lead to a large-scale substitution of assets.