In lieu of the recent investigation from the New York Attorney General over Tether and Bitfinex, many positive outcomes are actually possible. Firstly, the action can be taken as protective movements by the regulators on investors’ interests. The internal transaction between Tether and Bitfinex is the target for the New York Attorney General as Tether is claimed to have sufficient reserve to back up the which is set as a stable coin with a 1 to 1 fixed rate to the US Dollar until July 2017. The following table shows the assets and liabilities Tether discloses after the accusation from the NY AG, Ms. Letitia James. Only take consideration on the USD backed Tether, 2.88 billion USD of total assets and 22.7 million USD of excess assets is certainly a strong pool of capital to issue a “tethered” . But is it enough?
It is enough for the community to like the idea Tether is backed with sufficient asset pool as safety net despite the sort of irony that DeFi or decentralized finance started with the idea from counter fiat currencies. It is also a very popular stable coin for the global community to have the mean of a converted stable coin from controlled fiat currencies to further engage in different / transaction purposes. On the other hand, just as the current accusation shows, the venerability and transparency will be the major concerns which do not slide away yet unlikely to be fully disclosed due to the nature of the business.
The demand on a stable coin hence is high and the wave may surprisingly not come from “traditional” fiat currencies such as USD, EURO, and JPY. One big pool is CNY, the fiat currency of despite the super tight control over the by the Chinese authorities. The interests and demands are solid in mainland and the Chinese speaking population around the globe, namely Southeast Asia, North America, and Oceania. The political risk in the field in a matter of fact merely impacts the means of the further development on this direction as investors’ quest for the CNY reserved is passionate and immediate. It is rather the business risks an issuing party face and must be carefully executed with top level management and first class organizational control.
The user scenes will be full of potentials. Not limited to a , the CNY-backed form of coin can be an alternative payment method as well as a main or sub channel for a transaction by meaning the digital assets is assessable and convertible regardless of physical borders. Another possibility although not realized yet is not link the coin with certain type or types of other assets such as art, commodities or even intangible ideas. Exodus OTC is thrilled by the potential and mission ahead and as an enterprise to provide the strong capital commitment into the creation of the TCNY and the long term support of its circulation.
Published at Sun, 05 May 2019 05:14:39 +0000
