"Stablecoins claim to solve these problems. Because their value is safe in terms of dollars or their equivalent, they are attractive as a unit of account and valuable storage. They are not mere vehicles of financial speculation, " explained Professor Eichengreen.As long as stablecoins are fully guaranteed by their values, they are expensive proposals for the vast majority of organizations. These alternatives to crypto-currencies will eventually, he says, eventually cause problems.
"It is not obvious that the model will evolve or that governments will let it. "
Meanwhile, the Winklevoss Gemini USD has been endorsed by New York's Financial Services Department (NYDFS) . The two brothers want to launch "a reliable and regulated digital representation" that would be the bridge between crypto-currencies and the traditional financial system.
In direct competition with the Tether, the Gemini USD is strictly pegged to the US dollar and built on the Ethereum Blockchain.
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For another project based on the Ethereum Blockchain, Basic received a total value of $ 133 million from investors in Silicon Valley . It is built with an integrated mechanism that controls offers and maintains price stability.
What do you think about what Professor Barry Eichengreen said about Tether and crypto-currencies? Tell us in the comments section below.
