Tether Challenges Deutsche Bank’s Concerns Over USDT Stability

A May 7 research examined the historical survival rates of currency pegs and found that they have only lasted 14% of the time since 1800. The attention now turns to stablecoins, as Bank experts voice concerns about their vulnerability to “turbulence and de-pegging events.”

The report said, “While some may survive, most will likely fail, particularly due to the lack of transparency in stablecoin operations and vulnerability to speculative sentiment.”

Stablecoin activities are also under close examination; worries about their transparency and vulnerability to speculative tendencies are growing. The catastrophic $45 billion loss in the global cryptocurrency market that followed the collapse of TerraUSD in May 2022 serves as a sobering reminder of the dangers associated with stablecoins.

Surveying Sentiments and Market Monopolies

Six nations’ worth of respondents to a poll expressed doubts about stablecoins’ prospects; just 18% predicted success. There are concerns about Tether’s dominance in the stablecoin space, as Deutsche Bank is concerned about its influence and the possible consequences of a “Tether peso moment.”

Tether shot back at the study, arguing that it lacked sufficient data to support its claims. The dominant stablecoin brushed off the decrease projections, calling instead for a more thorough investigation.

The results highlight the necessity of improved supervision and openness in stablecoin activities in order to minimize any market fluctuations and protect the interests of investors.