Is Tether a Fraud? Its Bank Says It’s Not – Ep.161
Deltec Bank & Trust bought bitcoin with client money
Issuing bank USDT admitted to owning a large amount of BTC
A financial institution purchased cryptocurrency at a rate of $ 9300
The bank intends to continue to buy bitcoin while maintaining quantitative easing
The intermediary bank Tether invested client money in bitcoin for another $ 9 300
The intermediary bank of the largest stablecoin by market capitalization, tether (USDT), holds large reserves in bitcoin. This was announced by the chief investment officer of Deltec Bank & Trust Hugo Rogers in the annual report.
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According to Rogers, the bank has reduced the volume of government bonds, but still holds some of the funds in gold, as well as “a large position in bitcoin.” At the same time, the top manager of Deltec Bank & Trust has admitted that the bank will continue to buy bitcoin if the Fed maintains its rate of quantitative easing.
Inflation hedging instrument
According to Rogers, the bank acquired bitcoins at a market rate of $ 9,300..
This means that at the current rate, the ROI was 400%. Despite the fact that he does not name the exact date of the purchase, the last time Bitcoin traded at such values in July 2020.
On moment of writing USDT capitalization is $ 24.2 billion, making it the largest stablecoin on the market.
The second in terms of capitalization is USD coin (USDC) with a market value of $ 4.7 billion. The token closes the top three. As the use of cryptocurrencies grows, new types of tokens. They can represent value or something intangible like voices. Two … More DAI with a capitalization of $ 1.4 billion.
However, the monopoly of Tether may be shaken, since today (January 15) the deadline for reporting on financial transactions of stablecoin and cryptocurrency exchange Bitfinex, which are accused by the New York Attorney General’s Office (NYOAG) of fraud, money laundering and market manipulation.
Also, the life of stablecoins may become more difficult with the arrival of the Joe Biden administration, who is urged to impose restrictions on the use of stablecoins under the pretext of combating money laundering and financial terrorism..
Why the UK is going to regulate the turnover of stablecoins – read in the material BeInCrypto.