Howard Lutnick of Tether Custodian, the CEO explained the importance of stablecoins in the cryptosphere, and the benefits they bring to the United States Dollar.
The following is a list of CoindeskHoward Lutnick has commented on the long-running debate about the stabilitycoins tied to the US Dollar and whether or not they are contributing to the dominance of US dollars globally.
In his speech at the Chainalysis Conference, he explained that stablecoins are beneficial for the US economy and contribute to US dollar dominance.
- Dollar hegemony has fundamental importance to the United States of America. It’s important to us and our economy. Tether, Circle and other stablecoins are backed by a proper system.
- The U.S. Treasury Notes market is driven by stablecoins, which are not a risk for the global system. Howard Lutnick explained.
Dollars’ superiority in the world economy allows for the United States run huge deficits, to borrow cheaper and to impose sanctions against adversaries.
Stablecoins are widely used by crypto traders as collateral and funding currency in derivatives trading.
In May 2022, investor confidence in stablecoins was impacted by the collapse of Terra’s algorithmic currency, UST.
Tether (USDT), and Circle (USDC), however, have passed the test of stress and proven themselves to be stablecoins that are well supported and powerful over the years.
Howard Lutnick, CEO of Cantor-Fitzgerald is a custodian of Tether Holdings. Tether Holdings issues the largest stablecoin in the world: tether.
You Should Know
- Stablecoins, or stablecoins as they are also known, are cryptocurrency that ties their value to an asset such as a currency. Two of the most popular stablecoins are tied to the US dollar. The two most popular stablecoins in the Crypto industry are Circle (USDC) and Tether (USDT).
- The market capitalization of Tether (USDT), the top-ranked cryptocurrency, is $107 billion. Circle’s USDC was ranked second with a value of $22.25 billion.
- Stablecoins are a safer alternative to other crypto currencies, which can be volatile.
Michael Ndu Okeke
I’m an Editorial Analyst, New Media enthusiast and Cryptocurrency expert. Follow me on Twitter