Bitcoin Cash (BCH) Advocate Roger Ver: 'Stablecoins Aren't Actually Stable'

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Tue, 05/12/2020 - 08:32
Alex Dovbnya
Bitcoin.com CEO Roger Ver claims that stablecoins incur some risks that are linked to their issuers
Cover image via www.youtube.com
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In a recent interview with Bloomberg, Bitcoin Cash (BCH) proponent Roger Ver said that stablecoins aren’t actually stable since their holders are “at the mercy” of whoever issues these digital assets.

However, he doesn’t deny that it’s a very convenient tool compared to wire transfers:

If you’ve ever had to do a wire transfer, and then try sending a stablecoin, the stablecoin wins hands down in terms of speed and convenience.

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The biggest crypto story of 2020 

Ver predicts that “more and more” people will start using fiat-backed coins apart from actual cryptocurrencies.

So far, 2020 has been the year of stablecoins. Following the March sell-off, the demand for digital assets that are not prone to volatile price swings has exploded.

Tether (USDT), the flagship stablecoin, recently reached $8.6 bln across numerous blockchains, thus coming close to trouncing XRP

The circulating supply of smaller fiat-pegged currencies also swelled, with USD Coin (USDC) reaching $747 mln. 

Tether remains a point of contention 

It is worth noting that Tether has faced numerous accusations as to whether the USDT stablecoin is backed by dollar reserves.  
 
As reported by U.Today, the company revealed that only 74 percent of its supply was actually pegged to fiat (including its equivalents) back in March 2019. However, it insisted that the stablecoin was fully backed again in November.

Regardless, Tether remains a contentious project. Veteran trader Peter Brandt recently opined that USDT was as safe as “the Nigerian Trinket.”  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


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