Tether to unveil £ version of Stablecoin as UK aims crypto superiority

Tether, the controversial stablecoin that fortifies over $60 billion of the crypto economy, is reportedly launching a British version to take advantage of the UK government’s goal of making Britain an international cryptocurrency hub.

As per reports, the British version of the stablecoin will be developed on the Ethereum blockchain with the value set at £1, similar to the US dollar equivalent of Tether, which actively trades $67bn (£55bn) on cryptocurrency channels.

Paolo Ardoino, chief technology officer, Tether, has stated that the firm believes that the United Kingdom is the next frontier when it comes to blockchain innovation and the broader execution of cryptocurrency for financial markets.

Ardoino further expressed the company’s desire to lead the innovation by offering global cryptocurrency users access to a stablecoin that is GBP-denominated and issued by the world’s largest stablecoin issuer.

Tether is ready to cooperate with UK regulators to make this desire a reality, Ardoino claimed.

The GBPT token launch is taking place at an unpromising time for cryptocurrencies as the sector has shrunk below $1 trillion from almost $3 trillion within the course of a couple of months.

Bitcoin, the sector’s flagship cryptocurrency, has dropped from a peak of $69,000 to below $20,000. Additionally, USD Tether has fallen by more than $8 billion over a week from a peak of $20 billion as more coin holders rush to reimburse the coins into safer assets.

However, Tether claims to have a stable stance in the business, pointing out the rapid withdrawal of billions as the proof of its firm position. Supposedly, in early June, Tether put out a statement regarding fulfillment of redemption requests of USD₮, accounting for around $10 billion that held nearly 12% of outstanding USD₮ within a week, which no bank could process.

Earlier, Tether was barred from operating in New York, having been fined $18 million for its claim that Tether was backed by US dollars held in reserve. The statement was later concluded as a lie by the office of the New York attorney general.

Although now the company claims that it maintains its stability with each Tether individually backed by assets held in reserve.

Despite the downfall in the crypto sector, the UK government continues to support the industry with regulatory encouragement for stablecoins.

A Treasury spokesperson added that the UK is focused on putting forward its financial services for crypto-asset technology and innovation. It will include conditions on payments through stablecoins to operate and grow safely while also reducing potential risks involved with financial stability.

Source credit: https://www.theguardian.com/technology/2022/jun/22/tether-stablecoin-tied-to-pound-uk-crypto-currency

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