Tether issuer, the company behind the controversial cryptocurrency stated that it had invested a small part of its reserves in Bitcoin. According to the court filing that we have here today in our altcoin news, ‘’a small amount’’ of the reserves was invested into the largest cryptocurrency.
Per the document, the attorney for Tether’s associate company Bitfinex David Miller, says that the Tether issuer has invested a small amount of USDT reserves into bitcoin highlighting that ‘’prior to the Apil 24 order, Tether did invest in instruments beyond cash and cash equivalents, including Bitcoin.’’
Miller stated further that Tether made other investments as well such as purchasing other assets. In response to the statement of the attorney, the New York Supreme Court Judge Joel M. Cohen pointed out the investigation of USDT and tried to understand why someone would invest in such a volatile asset like bitcoin:
“Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.”
As it was previously reported in the best cryptocurrency news sites, the New York Attorney General’s Office (NYAG) noted that the crypto exchange Bitfinex lost nearly $850 million. The office also stated that Bitfinex used the funds from Tether to try and cover the previously mentioned $850 million. The lawyers for Tether confirmed the rumors that its tokens didn’t really have full reserve backing but that only 74 percent was backed by fiat dollars and some other reserves.
The New York Attorney General Letitia James also requested a disclosure for the documents regarding the deal that was allegedly made between the two companies. Following her request, the New York Supreme Court Judge Joel M. Cohen decided that both of the parties should resolve their dispute in a refined argument. He also noted that the NYAG cannot bring its full force of the court against Bitfinex and Tether since both of the companies denied any wrongdoing. The companies even criticized the authorities for the way they handled the case.
XRP Experiences A Sharp Price Decrease Of More Than 10%
Binance Removes US Resident Ban: Launching In “A Month Or Two”
“3. Prohibition of use By accessing and using the Services, you represent and warrant that you are not on any trade or economic sanctions lists, such as the UN Security Council Sanctions list, designated as a “Specially Designated National” by OFAC (Office of Foreign Assets Control of the U.S. Treasury Department) or placed on the U.S. Commerce Department’s “Denied Persons List”. Binance maintains the right to select its markets and jurisdictions to operate and may restrict or deny the Services in certain countries at its discretion.”When comparing the wording to the one uploaded in June, it is clear that Binance removes US resident ban. The previous text read that "Binance is unable to provide services to any U.S. person," - which is why the difference is obvious.
China’s Digital Fiat Currency Is Not A Real Cryptocurrency
“Since last year, the staff at the Digital Currency Research Lab have been working 996 to develop the system. We can say the CBDC is now ready to launch at one’s call," was his speech, later shared by many best cryptocurrency news sites.The CBDC with this aims to replace MO, meaning cash in circulation through a two-tier system. The central bank will issue the digital yuan only to commercial banks, who will further issue it to the public. Meanwhile the PBoC and its Digital Currency Research Lab are the ones standing behind China's digital fiat currency - along with more than 50 patent applications which are all either invented or co-invented by Yao Qian. One patent application reads:
“The emergence of digital currency is an inevitable trend. So far, privately issued digital currency bears the features of anonymity and volatility. Central banks must take their impacts on the payments, monetary systems and financial stability seriously. As such, it’s inevitable for central banks to push for digitized fiat currencies to optimize their circulation.”However, physical cash is still arguably the only form of fiat money inside China that can remain anonymous. We can see that China's digital fiat currency is not close to cryptocurrency - and the only third-party methods which are compared to bank wire can be offered by companies like Alibaba or WeChat - both requiring real-name verification authenticated by users' IDs as well as additional banking information.
“Existing M0 (banknotes and coins) are subject to counterfeit and money laundering risks. … The [CBDC] system should follow the existing rules about anti-money laundering and anti-terrorism financing imposed on cash, and should report to the PBoC on large amounts and suspicious transactions,” Mu emphasized in a speech.
Market With Mixed Signals As Ether And Bitcoin Record Minor Gains
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