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.”
Arman Shirinyan
Caroline Amosun
Dan Burgin
Alex Dovbnya