Tether CEO says stablecoins are more reliable than deposit tokens

Tether CEO Paolo Ardoino pushed back against the Bank for International Settlements' concerns over stablecoins, saying on X that stablecoins can be seen as a more reliable form of money than deposit tokens that rely on fractional-reserve banking. Ardoino said stablecoins are fully backed by reserves such as U.S. Treasuries, while typical deposit tokens have reserve ratios of around 10% and stablecoins hold reserves covering their full issuance. Earlier, BIS General Manager Pablo Hernandez de Cos said stablecoins are not well suited to serve as a large-scale means of payment, should be limited to special-purpose use cases, and that deposit tokens should handle everyday payments.