Cryptocurrency company Tether announced on plans to issue a stablecoin pegged to the British pound sterling next month. Great Britain itself has considered such an instrument.
Stablecoins are cryptocurrencies created to maintain a stable exchange rate against one of the currencies or another valuable asset like gold. Such digital assets allow crypto traders to avoid the volatility that inevitably accompanies Bitcoin and other digital assets. Created by BVI-registered Tether, the dollar-pegged stablecoin is the third largest cryptocurrency with sales of $68 billion and is backed by dollars and US Treasuries.
Meanwhile, legislation is under discussion in the UK that will give some departments the powers of regulators to oversee stablecoins – the country plans to use the potential of blockchain and cryptocurrencies to work with consumers. Tether CTO Paolo Ardoino (Paolo Ardoino) expressed its willingness to work with British agencies.
So far, Tether hasn’t just circulated dollar-pegged stablecoins: the company also has digital assets worth the equivalent of euros, offshore Chinese yuan, Mexican pesos, and gold.