Tether Reveals Reserves May Not Always Be Fully Backed By USD
By Mark Lemon – Cryptocurrency Professional
Best known as the number one Stablecoin and by a sizable share of the market, Tether has revealed details on their site of another controversial move. The Stablecoin is known for its ease to buy cryptocurrency as it is backed 100% by reserves of USD, however this may not be entirely true.
For every one Tether that is issued, the company has reported in the past to reserve one US Dollar in their bank account to back the value of the crypto. This means if a user was to use Tether to buy BTC, then the reserves of Tether would fluctuate via the smart contracts to reach an equilibrium of 1:1.
Tether has been the preferred choice for traders to buy and sell cryptocurrency by providing investors with the ability to make crypto-to-crypto trades using a cryptocurrency based on the value of a Fiat. They have always ensured their coin was completely backed by reserves of USD but have now stated on their site:
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’)”. Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.
As Tether may include other assets, we could see a change in the preferred stablecoin to buy and sell Bitcoin. There has been fierce competition in the Stablecoin market and news like this could be positive for the upcoming coins and projects.
Don’t forget you can buy Crypto UK from us whilst keeping up with the latest developments in the crypto world.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
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