Bloomberg: USDT transactions affect the value of USD
Stablecoins are still controversial assets, and their fast-growing popularity is a dilemma for officials. These cryptocurrencies solve the key problem of digital assets – stablecoins are not volatile being backed by fiat currencies, metals, stocks, etc.
USDT leads the ranking of stablecoins, and the community considers this cryptocurrency as a digital version of the US dollar. The stablecoin is in the 5th position according to its market capitalization. As for the 24h trading volumes, USDT heads the ranking, overrunning Bitcoin by more than 200%.
While the officials are thinking about the potential of stablecoins and the threat to the traditional economy, Bloomberg strategist Mike McGlown stated a thunder announcement. According to the analyst, USDT transactions positively affect the value of the fiat US dollar.
“Trades in digital USD are just a matter of time. The US government should start regulating the market to crash China down,” stated McGlown.
Furthermore, the Bloomberg strategist highlights that “Bitcoin is close to becoming the global reserve asset, while stablecoins backed by USD (like Tether) increase the value of the fiat US dollar. Digital versions of USD are the most in-demand currencies.”
At the moment of writing, the USDT’s market capitalization is $66.8 billion. This number has skyrocketed by 316.28% since the beginning of 2021.