After the recent turmoil with the USDT, a stablecoin issued by Tether, the project’s co-founder defended constant auditing processes in the company’s reserves.
THE declaration ex-Tether William Quigley, now a WAX executive, was aired on CoinDesk TV on Tuesday (23).
Necessary measures
The position defended by Quigley is based on the sealed agreement between Bitfinex, Tether and the New York State Attorney’s Office (NYAG).
When analyzing the process adopted by the cryptocurrency, of mixing operational and custodial money, Quigley defines:
“They are their own enemies.”
Critically, the executive asks: “how difficult is it to do an audit?”. Quigley argues that the inspection process should be done at least once a quarter or monthly.
In this way, it is possible to ascertain whether a dollar is being added to the reserves every time a USDT is generated.
In response to Quigley, Tether’s general counsel, Stuart Hoegner, informed CoinDesk that the company is organizing:
“Tether is taking steps to increase transparency and plan to make announcements about it in due course.”
Risks to Bitcoin?
Tether handles more than $ 41 billion in transactions. This data promotes the company as one of the main dollar-backed stablecoins, quoted at approximately R $ 5.54.
Due to the link with the American currency, the USDT has become an important liquidity key for investors.
However, Quigley points out that some factors may interfere with the growth of the cryptocurrency.
For the executive, the issuance of a digital currency managed by the government may take the space of other crypto assets in the market.
In addition, JPMorgan analysts said in February that Tether’s delicate situation with NYAG could impact its market credibility.
For the experts, this scenario would entail systemic risks for the cryptomercado.
NYAG case
NYAG accused Theter and Bitfinex for market manipulation. Both pledged to pay a fine of US $ 18.5 million, about R $ 102.48 million, to close the case.
In addition, Tether is required to provide periodic reports to the Prosecutor’s Office. The government agency argues that the survey will facilitate the control and transparency of stablecoin funds.
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