TechFlow News, according to Cointelegraph, Deutsche Bank has released a report warning that stablecoins, including the dollar-pegged USDT, could face a "currency collapse moment," which would severely impact the crypto industry. Citing the 2022 collapse of Terraform Labs' algorithmic stablecoin TerraUSD, Deutsche Bank analysts pointed out that most fiat-pegged crypto assets ultimately become unpegged due to speculative sentiment. They also questioned the transparency of Tether's reserves, raising doubts about its solvency.
In response, Tether, the issuer of the stablecoin, rebutted Deutsche Bank's report, calling it lacking in clarity and substantive evidence, and relying on vague assertions rather than rigorous analysis. A Tether spokesperson stated that while the report attempts to predict the decline of stablecoins, it fails to provide concrete data to support its claims. Furthermore, comparing Tether to the algorithmic stablecoin Terra is misleading and irrelevant to discussions about reserve-backed tokens.
