Tether CEO Rebuts BIS Criticism, Says Stablecoins Fully Backed by Reserve Assets While Tokenized Deposits Lack Support

August 30 news, in response to criticism from the General Manager of the Bank for International Settlements (BIS) that stablecoins lack the capability for large-scale credible payments and that tokenized deposits are superior, Tether CEO Paolo Ardoino stated: Stablecoins are instruments 100% fully reserved by liquid assets such as Treasury bonds; whereas tokenized bank deposits are backed only by verbal promises and bank deposits not protected by deposit insurance (typically with only a 10% liquid asset reserve). He pointed out that what the BIS truly fears is that stablecoins "expose the emperor's new clothes." Why would people place their savings in fractional reserve products rather than fully reserved stablecoins? What would happen to the financial system if the public realized stablecoins are safer and began shifting their savings? Ardoino concluded: "We are at the 'moment of truth' stage."