Introduction
Tether, the stablecoin issuer, has reportedly disclosed that it has $1.5 billion worth of Bitcoin reserves, according to an attestation report by BDO Italia. This report is the latest in a series of attempts by Tether to prove that it has sufficient reserves to back its stablecoin, which is pegged to the US dollar.
Tether’s Reserves
According to the report, Tether had $1.5 billion worth of Bitcoin in its reserves as of March 31, 2021. This represents a significant increase from the $35 million worth of Bitcoin that Tether had in its reserves in April 2019. The report also states that Tether’s reserves are audited on a monthly basis by Moore Cayman, a leading accounting firm.
Criticisms of Tether
Tether has faced criticism in the past for its lack of transparency regarding its reserves. Some have accused Tether of using its stablecoin to manipulate the price of Bitcoin, while others have raised concerns about the company’s ability to redeem its stablecoin for US dollars.
Related:SEC?s War on Crypto: How Far Will It Go?
Future of Tether
Despite these criticisms, Tether remains one of the most widely used stablecoins in the cryptocurrency market. Its market capitalization currently stands at over $60 billion, making it the third-largest cryptocurrency by market cap after Bitcoin and Ethereum. With the release of this latest attestation report, Tether may be able to alleviate some of the concerns that have been raised about its reserves.
Conclusion
Tether’s disclosure of its $1.5 billion worth of Bitcoin reserves is a significant development for the stablecoin issuer. While Tether has faced criticism in the past for its lack of transparency, this latest attestation report by BDO Italia may help to alleviate some of these concerns. As Tether continues to grow in popularity, it will be interesting to see how the company addresses the criticisms that have been raised about its operations.
