Tether (USDT) and the payment application Strike are teaming up. Users of our trending app, which has rapidly expanded its presence in countries around the globe, will be able to use Tether (USDT) crypto stablecoin as a method of payment. Good news for some, but not for regulatory authorities who still view cryptocurrency as a Ponzi scheme.
Strike, the digital payments platform built on BTC’s Lightning Network, has added Tether (USDT) (USDT) to its platform. In a statement on Monday, Tether (USDT) stated that the collaboration will expand the convenience and efficiency of digital transactions.
Tether (USDT) and Strike
In the statement, Paolo Ardoino, Tether’s (USDT) chief technology officer, claimed the partnership “signifies the growing acceptance and understanding of crypto stablecoins as a reliable and efficient digital payment solution.”
Crypto Stablecoins like Tether (USDT) add a “reliable bridge betwixt the cryptocurrency world and traditional financial system,” the statement likewise claimed. On the other hand, some regulatory authorities are far from sold on the reliability of crypto stablecoin.
Strike allows users to send and receive money immediately, universally, and without charges, using BTC’s Lightning Network. Since its founding in 2019, the company has expanded aggressively. Now USDT may directly take advantage of, and play a role in, this growth.
Over the weekend, the application likewise announced its Bitcoin (BTC) payments will expand into 65 countries. Furthermore, its headquarters will likewise be moving to El Salvador. Reports by CEO Jack Mallers, the decision to relocate is owing to increasing regulatory pressure and a lack of clarity in the United States.
Tether (USDT) a “Mammoth House of Cards,” Ex-SEC Official Says
Although while the marketing pitch may emphasize stability and reliability, Tether (USDT) has come in for criticism in recent weeks. A previous SEC official has lashed out at the company for its lack of a suitable audit. John Reed Stark, a previous chief of the SEC’s Office of Internet Enforcement, believes the crypto stablecoin may be the “next domino to fall.”
Tether (USDT) has cited attestations as proof of its financial health and strong market position. On the other hand, in the absence of an audit, Stark argues, who knows what the real financial figures can potentially be?
“Under any circumstance, an attestation is not the same thing as an audit — and this kind of ‘unverified snapshot’ would never pass any sort of regulatory muster,” he stated on Twitter.
Tether (USDT) has been promising a proper audit for nearly 6 years now. In July 2021, Tether’s (USDT) General Counsel, Stuart Hoegner, promised a full audit in “months, not years.” Nonetheless, the company has is still to make that step.
Crypto Stablecoins rely heavily on financial reserves to sustain stability and instill trust, as they back each unit with real-world assets. Stark is not the only voice to question how closely Tether (USDT) adheres to such a model. Despite the fact, Tether (USDT) asserts its crypto tokens are fully backed by abundant reserves reaching across investment classes.