Tethering Cryptocurrencies to Fiat Currencies Without Transparency: A Case Study

8 Pages Posted: 7 Mar 2018

See all articles by Usman W. Chohan

Usman W. Chohan

University of New South Wales (UNSW), UNSW Business School; Critical Blockchain Research Initiative (CBRI)

Date Written: February 23, 2018

Abstract

This paper examines the risks of tethering cryptocurrencies to fiat currencies without transparency using a case study of the Tether cryptocurrency, a Hong Kong/Switzerland based crypto-instrument that fails to divulge its underlying business case through audit or transparency, and yet ranks in the top 20 cryptocurrencies by value. The paper thereby raises questions about the need for greater transparency in the cryptocurrency realm, particularly in their relation to fiat currencies, which is yet mired in ambiguity.

Keywords: Tether, Bitcoin, Cryptocurrency, Fiat Money, Central Banks, Regulation, Financial Regulation, Accountability

Suggested Citation

Chohan, Usman W., Tethering Cryptocurrencies to Fiat Currencies Without Transparency: A Case Study (February 23, 2018). Available at SSRN: https://ssrn.com/abstract=3129978 or http://dx.doi.org/10.2139/ssrn.3129978

Usman W. Chohan (Contact Author)

University of New South Wales (UNSW), UNSW Business School ( email )

Sydney, New South Wales
Australia

Critical Blockchain Research Initiative (CBRI) ( email )

Islamabad
Pakistan

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