Despite the high hopes based on the Tether Stablecoin (USDT), it remains more or less defective. UC Berkeley Economics Professor Barry Eichengreen believes that it will unfortunately not be a magic cure for crypto-market investors.
Denounce the flaws of the Tether
Stablecoin do not have a certain reliability because they are linked to a stable asset such as fiat money. On the other hand, although Bitcoin and altcoins are volatile, price volatility is not necessarily a weakness.
"Stablecoins claim to solve these problems. Because their value is safe in terms of dollars or their equivalent, they are attractive as a unit of account and valuable storage. They are not mere vehicles of financial speculation, " explained Professor Eichengreen.As long as stablecoins are fully guaranteed by their values, they are expensive proposals for the vast majority of organizations. These alternatives to crypto-currencies will eventually, he says, eventually cause problems.
"It is not obvious that the model will evolve or that governments will let it. "
Tether controversy benefits Gemini USD
This announcement comes a few days after the launch of the Gemini USD (GUSD) twin Winklevoss, the founders of the Gemini crypto-purse. Tether is currently the most popular stablecoin on the world market. However, he is at the center of media hype and fierce criticism because of suspicions about his alleged affiliation with Bitfinex owners .Meanwhile, the Winklevoss Gemini USD has been endorsed by New York's Financial Services Department (NYDFS) . The two brothers want to launch "a reliable and regulated digital representation" that would be the bridge between crypto-currencies and the traditional financial system.
In direct competition with the Tether, the Gemini USD is strictly pegged to the US dollar and built on the Ethereum Blockchain.
https://twitter.com/tylerwinklevoss/status/1039180585498017792
- tylerwinklevoss
For another project based on the Ethereum Blockchain, Basic received a total value of $ 133 million from investors in Silicon Valley . It is built with an integrated mechanism that controls offers and maintains price stability.
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