Tether CEO Slams BIS Over Tokenized Bank Deposit Claims

Tether's USDT stablecoin has become a crucial part of emerging markets, with over $183 billion in market capitalization. Tether CEO Paolo Ardoino defended the stablecoin against criticism from the Bank for International Settlements (BIS), stating that it is a more trusted form of money than tokenized bank deposits.

Ardoino argued that stablecoins are safer because they are fully backed by U.S. Treasuries, while tokenized bank deposits usually only have 10% in liquid assets. He pointed out that there are economies 'heavily relying on USDT for both internal and foreign commerce.'

The debate highlights the fear among banks that the CLARITY ACT could trigger massive deposit flight to stablecoins. Ardoino hinted at large-scale deposits-for-stablecoins substitution, saying 'What happens to financial system if people start realizing that stablecoins are safer and move their savings into the better asset class? We're in the Find Out phase.'