Tether launches pound-linked stablecoin as UK aims to become cryptocurrency hub | Cryptocurrencies
Tether, the controversial “stablecoin” that supports more than $ 60 billion of the crypto-economy, launches a UK version to capitalize on the UK government’s desire to make the UK a global cryptocurrency hub.
Like the US dollar counterpart, of which $ 67 billion (£ 55 billion) is actively traded on cryptocurrency markets, the digital asset will be built on the Ethereum blockchain, but the value will be set at £ 1.
“We believe that the UK is the next front line for blockchain innovation and the wider implementation of financial markets for cryptocurrencies. We hope to help lead this innovation by giving cryptocurrency users worldwide access to a GBP-denominated stablecoin issued by the largest stablecoin the issuer, says Paolo Ardoino, chief technology officer at Tether.
“Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to the continued use of Tether stablecoins,” added Ardoino, who is also CTO of the Bitfinex cryptocurrency exchange, a dual role shared by the two companies’ CEOs, CEOs, CFOs and legal advisers.
The launch of the GBPT token comes at an unfortunate time for cryptocurrencies. The sector as a whole has fallen from almost $ 3tn with trading symbols to less than $ 1tn, and the flagship cryptocurrency, bitcoin, has fallen from a peak of $ 69,000 to below $ 20,000. Tether’s largest token, the USD tether, has fallen by more than $ 8 billion in just over a week as holders race to withdraw money for safer assets, and the total value circulating has fallen by nearly $ 20 billion since the peak.
Despite the fall, Tether says the business has never been more stable, pointing to the rate at which billions were drawn as evidence of its solid foundation. In early June, the company issued a statement boasting: “Tether recently met $ 10 billion in redemption requests within a single week and was able to fulfill all requests in full with ease; $ 10 billion in redemptions represented more than 12% of outstanding USD tokens. No bank in the world could process the withdrawal of 12% of its outstanding debt within a week. “
The company claims that each Tether is backed one by one by assets held in reserve, which is how it maintains stability. It is a different claim than the one it made when it started its business: that each Tether was supported by US dollars kept in reserve. A New York State Attorney’s investigation concluded that the claim was a “lie,” and Tether was barred from operating in New York and fined $ 18 million.
Despite the cryptocurrency, the UK government says it continues to support the sector, pointing out stack coins as an area that needs regulatory encouragement.
A finance ministry spokesman said: “We are committed to putting the UK financial services sector at the forefront of cryptocurrency technology and innovation. This includes creating the conditions for stack coins – when used as a means of payment – to operate and grow safely, while taking potential financial stability The forthcoming bill on financial services and markets will set up the framework for regulating stack coins in the United Kingdom. “
The Financial Conduct Authority and the Bank of England declined to comment.