A Fed official in the US described Tether as a threat to financial stability.
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A senior US Federal Reserve official has described Tether’s USDT stablecoin as a risk to the stability of the financial system. In a slide presentation Friday, Boston Federal Reserve Bank Chairman Eric Rosengren listed Tether among the “financial stability challenges” that the US central bank is watching. Rosengren has also included stablecoins, which he calls “new disruptors” of short-term credit markets, among the risks.
He detailed the issue in an interview with Yahoo Finance the same day.
Caitlin Long, a Wall Street veteran and a Bitcoin supporter, found these words of the Fed official remarkable:
Long added that Bitcoin users, who consider Tether-related concerns to be exaggerated, should not “hit the messenger”. “I championed Tether as a groundbreaking technology and also said that the reserve disclosure raises more questions than it answers,” he said, referring to the company’s collateral breakdown behind USDT released in May.