Commodities trader and author Peter Brandt compares holding the stablecoin Tether with holding naira. According to him, those who hold Tether are holding an unstable asset like the Nigerian Trinket.
Peter said it is fools that are holding their wealth even overnight in the Tether stablecoin. He went further making jest of those who condemn the US dollar as a fiat currency yet hold tether.
It’s no doubt Tether has been involved in various controversies even including it’s sister firm Bitfinex such as market manipulations, printing of new coins, lack of transparency etc.
Despite the controversies, Tether being the first stablecoin has continued to show strength and remain even relevant in the crypto industry.
But to Peter Brandt, whoever holds his wealth in Tether should sleep well because their wealth “will sit overnight with a patch-work of exchanges not subject to regulatory authorities and for whose financial strength you know little about.”
Peter Brandt’s statement presents some interesting topics of discussion about cryptocurrency exchanges and Tether. Consumer protection is a priority for regulators in granting regulatory licenses to businesses, however, not all exchanges where Tether is listed are regulatory compliant. Also, Tether itself not being transparent in an industry that takes pride in trust is somewhat inconvenient.
It’s no doubt the Naira has continued to fall in value against other fiat currencies. The inflation rate continues to run its course in the country thus weakening the purchasing power of the most populous black nation on the planet.
Over the past 6 years, the naira has lost over 50% of its value and this was even made worse with the global economic shutdown as a result of the coronavirus pandemic.
Though the government is implementing measures to protect the wealth of its citizens, at the moment, the case is still better than that of Venezuela.