Tether CEO Paolo Ardoino Defends Stablecoins After BIS Criticism

Tether CEO Paolo Ardoino responded on August 30 to criticism from the Bank for International Settlements, which said stablecoins do not have large-scale credible payment capability and that tokenized deposits have an advantage. According to PANews, Ardoino said stablecoins are fully backed 100% by liquid assets such as U.S. Treasuries, while tokenized bank deposits are supported by bank deposits that rely on verbal promises and are not protected by deposit insurance, with only about 10% backed by liquid assets. He said the BIS is really concerned that stablecoins are exposing what he called the emperor's new clothes, and added that the system is in a "truth revealed" stage.