Critics of Tether have questioned the quality and security of USDT reserves, hazarding the assumption that the stablecoin is not secured by anything. How justified are these arguments? And what can the company answer?
The situation is not as straightforward as it might seem at first glance.
Critics' arguments:
1. Tether does not provide a complete, detailed account of reserves, arousing suspicion.
2. The amount of USDT issued is huge (about $118 bln), raising doubts about the company's ability to maintain full security.
Tether’s answers and counterarguments:
1. Tether is not a public company and is not required by law to disclose full information about its reserves.
2. The company regularly publishes reports on the state of its reserves, prepared by independent firms, which is a form of external confirmation.
3. Tether states that it cooperates with various regulatory bodies, thus assuming a certain level of supervision.
4. Custodian Cantor Fitzgerald confirmed the availability of Tether reserves.
5. Despite criticism, USDT remains the most popular stablecoin, pointing to a certain level of confidence on the part of the market.
6. A full audit of a company of this level is technically complex.
From a legal standpoint, the absence of a full audit is not proof of a lack of reserves. However, this creates risks for users and potentially for the financial system as a whole. Regulators may tighten the requirements for stablecoins in the future, which could affect Tether’s business operations.
It should also be noted that USDT users should be aware of the potential risks and not invest funds that they cannot afford to lose. Regulators should also pay attention to the development of clear rules for stablecoins to ensure the stability and protection of users.