In a recent blog post on the Coinbase website, the company said that it is going to fight Tether, a controversial stablecoin that has been linked to scandals and problems for a long time.
Tether has been under scrutiny for years due to its questionable relationship with the Bitfinex exchange and its lack of transparency regarding its backing. This has led to concerns about whether Tether is actually backed by the US dollar, as it claims to be, or if it is being used to manipulate the cryptocurrency market.
In response to these concerns, Circle, a cryptocurrency exchange and stablecoin issuer, has decided to take action. In its blog post, Circle stated that it is “declaring war on Tether” and will be launching its own stablecoin, USDC, in order to provide a more trusted and reputable option for cryptocurrency users.
USDC is backed by US dollars and will be subject to strict regulatory oversight in the USA, according to Circle. This will provide greater transparency and accountability, as well as offer users a more stable and reliable option for their transactions.
This is what the company said in a blog post on December 8:
“Now more than ever, stability and trust are of the utmost importance to customers. Fiat-backed stablecoins (cryptocurrencies pegged to reserve assets like the U.S. dollar) provide customers stability and confidence during times of volatility.
However, the events of the past few weeks have put some stablecoins to the test and we’ve seen a flight to safety. We believe that USD Coin (USDC) is a trusted and reputable stablecoin, so we’re making it more frictionless to switch: starting today we’re waiving fees for global retail customers to convert USDT to USDC.”
In conclusion, Circle’s declaration of war on Tether is a significant development in the cryptocurrency world. By offering a more transparent and reliable stablecoin, Circle is hoping to provide users with a better option for their transactions and to help restore trust in the crypto market.
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