Tethering Cryptocurrencies to Fiat Currencies Without Transparency: A Case Study
8 Pages Posted: 7 Mar 2018
Date Written: February 23, 2018
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: Suggested Citation