Tether's USDT cryptocurrency has recently raised concerns in the financial sector due to several events that have caused uncertainty among investors.
One of the most concerning points is Tether’s lack of transparency regarding its reserves. Although Tether claims to back the value of USDT with assets such as US Treasury bonds and gold, the company has not conducted full public audits, and the company has been accused in the past of not holding enough dollar reserves to back all of the USDT in circulation.
Additionally, Tether and other stablecoins are under increased regulatory scrutiny, especially in the United States and Europe, where stricter regulation is being called for. Binance, one of the largest cryptocurrency exchanges, has stopped using USDT in its emergency fund, opting for a more regulated stablecoin like Circle’s USDC, suggesting a market preference for more transparent and secure options.
On the other hand, recent UN reports indicate that USDT has been used in illicit activities in Asia, which has led to further pressure on Tether. The company has responded by denying the accusations and emphasizing its collaboration with authorities to improve security and monitoring on its platform.
Overall, while USDT remains widely used in the market, transparency issues and regulatory pressure are creating an environment of uncertainty around this stablecoin.