Tether CEO rejects the argument that “stabilized currency cannot support large-scale payments”: the stable currency is 100 per cent of the liquid asset reserve and the bank is only part of the reserve pledged by a hook

On 30 August, Tether CEO Paolo Ardoino sent a letter in response to the statement of the Managing Director of the Bank for International Settlements (BIS), who believed that the stabilization currency was not sufficient to support large-scale payments and instead supported the monetization of bank deposits. Ardoino makes a structural comparison between the two: the stable currency is supported by a 100 per cent reserve of liquid assets (e.g., national debt) and the monetized bank deposits, which are essentially “coalized” bank deposits, which are usually under-insured and often have only about 10 per cent of the reserve. The real concern of the BIS is not whether or not the stabilization currency can be used to pay, but rather that it exposes the traditional banking system, the "New Emperor's Clothes". Ardoino then dropped two questions: Since the stabilization currency was a full reserve, why should savings be placed in some reserve products? What would happen to the financial system if people realized that stable currencies were safer and that savings would be moved? Ardoino directs the targeting of part of the reserve model of the traditional banking system。