The stablecoin realm and Tether have been under regulatory scrutiny for a long time. But this has not deterred the community members from launching an initiative in a bid to boost USDT’s use cases across the world. Dubbed ‘Tether Impact,’ the new brand-new organization that will be run by the community and will be a non-Profit, independent organization.
Tether Impact will essentially interact with the world’s largest stablecoin issuer Tether and the crypto ecosystem for the purpose of supporting and incentivizing the use of USDT in third world countries, emerging economies as well across the decentralized finance DApps. This was revealed by a community member, Daniele McDonald. As of now the official website for the initiative consists of just two paragraphs, one of which described its goal as,
“Tether Impact aims to be the bridging point between USDT and its users, raising awareness and educating the general Cryptocurrency Community on any ongoing Tether initiative.”
Growing Tether conundrum
While stablecoin, in general, has been a controversial subject among global lawmakers, USDT, particularly, has been firmly in the regulatory crosshairs. Among those raising an alarm about the potential risks of the world’s third-biggest cryptocurrency, Boston Fed President Eric Rosengren’s comment has stood out. In June, Rosengren not just listed USDT among the “financial stability challenges” the US central bank is eyeing, but also called it “new disruptors” to short-term credit markets. This was also one of the rare moments when an executive in the Feds explicitly cited USDT in a speech.
Currently, there is more than $60 billion worth of USDT in circulation which makes USDT deposits exceed that of many US banks.
Since the beginning, Tether has not been a transparent product, unlike its peers. This changed after the long battle with the New York attorney general [NYAG]. To conform with the settlement terms, the stablecoin has now started publishing the public with quarterly breakdowns of the investments used to back the stablecoins.