Tetherย (USDT) and the payment application Strike are teaming up. Users of ourย trending app, which has rapidly expanded its presence in countries aroundย theย globe, will be able to use Tetherย (USDT) cryptoย stablecoin as a method of payment. Good news for some, but not for regulatoryย authorities who still view cryptocurrency as a Ponzi scheme.
Strike, the digital payments platform built on BTCโs Lightning Network, has added Tetherย (USDT) (USDT) to its platform. In a statement on Monday, Tetherย (USDT) stated that the collaboration will expandย the convenience and efficiency of digital transactions.
Tetherย (USDT) and Strike
In the statement, Paolo Ardoino, Tetherโsย (USDT) chief technology officer, claimed the partnership โsignifies the growing acceptance and understanding of cryptoย stablecoins as a reliable and efficient digital payment solution.โ
Cryptoย Stablecoins like Tetherย (USDT) add a โreliable bridge betwixt the cryptocurrency world and traditional financial system,โ the statement likewise claimed. Onย theย otherย hand, some regulatoryย authorities are far from sold on the reliability of cryptoย stablecoin.
Strike allows users to send and receive money immediately, universally, and without charges, using BTCโs Lightning Network. Since its founding in 2019, the company has expanded aggressively. Now USDT may directly takeย advantageย of, and play a role in, this growth.
Over the weekend, the application likewise announced its Bitcoinย (BTC) payments will expand into 65 countries. Furthermore, its headquarters will likewise be moving to El Salvador. Reportsย by CEO Jack Mallers, the decision to relocate is owingย to increasing regulatory pressure and a lack of clarity in the United States.
Tetherย (USDT) a โMammoth House of Cards,โ Ex-SEC Official Says
Althoughย while the marketing pitch may emphasize stability and reliability, Tetherย (USDT) has come in for criticism in recent weeks. A previous SEC official has lashed out at the company for its lack of aย suitable audit. John Reed Stark, a previous chief of the SECโs Office of Internet Enforcement, believes the cryptoย stablecoin mayย be the โnext domino to fall.โ
Tetherย (USDT) has cited attestations as proof of its financial health and strong market position. Onย theย otherย hand, in the absence of an audit, Stark argues, who knows what the real financial figures canย potentially be?
โUnder any circumstance, an attestation is not the same thing as an audit โ and this kind of โunverified snapshotโ would never pass any sort of regulatory muster,โ he stated on Twitter.
Tetherย (USDT) has been promising a properย auditย for nearly 6 years now. In July 2021, Tetherโsย (USDT) General Counsel, Stuart Hoegner,ย promisedย a full audit in โmonths, not years.โ Nonetheless, the company has isย still to make that step.
Cryptoย Stablecoins rely heavily on financial reserves toย sustain stability and instill trust, as they back each unit with real-world assets. Stark is not the only voice to question how closely Tetherย (USDT) adheres to such a model. Despiteย theย fact, Tetherย (USDT) asserts its cryptoย tokens are fully backed by abundant reserves reaching across investment classes.
