ME News reported on August 30 (UTC+8) that, in response to recent warnings by BIS General Manager Pablo Hernández de Cos regarding the potential financial stability risks posed by stablecoins, Tether CEO Paolo Ardoino posted a critique of the BIS on X. He stated that there is a fundamental difference in the underlying risk structure between stablecoins and tokenized bank deposits, emphasizing that stablecoins are instruments fully backed 100% by highly liquid assets such as U.S. Treasuries, whereas tokenized bank deposits remain deposits within the banking system and are typically supported by a fractional reserve model, with only a portion backed by highly liquid assets. (Source: ChainCatcher)
Tether CEO Disputes BIS Warning on Stablecoin Risks
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Summary
On-chain news broke on August 30 as Tether CEO Paolo Ardoino pushed back against the BIS’s warning on stablecoins. He asserted that stablecoins are fully backed by liquid assets such as U.S. Treasuries, unlike tokenized deposits under a fractional reserve model. Federal Reserve developments remain closely monitored as the debate over stablecoin regulation intensifies.
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