In a sense eGold can be called a precursor of cryptocurrency. This means of payment for the Internet payments functioned from 1996 to 2008. Legally, eGold was a receipt for the placement of a certain amount of gold for storage at E-gold Ltd, in fact – electronic money, the issue of which, like Tether, was carried out by a private company.
Today Tether is the most popular stable coin, but the controversy over the nature of this project has not abated so far. The main question to Tether – is not it a scam? Lawyers from Washington confirmed the availability of funds on Tether’s accounts, but the company did not complete a full audit. That is why the topic of confidence in USDT, Tether’s asset, is regularly raised by various representatives of the crypto industry. Today, Tether decided to speak to CEO of Havven Kain Warwick.
Warwick decided to talk about Tether not by accident. Havven also issues stable coin – nUSD, an asset tied to the dollar and created for use on any platforms. By the end of 2018, the same stable coin will be launched on EOS.
Let’s return to eGold. Warwick says that this asset was very popular long before the invention of Bitcoin. The Internet needed its own currency and attempts to create a reliable payment tool are rooted in the early 1980s. One of the realizations of the idea of Internet money is eGold. In 2006, $ 2 billion was sent through this system. But the authorities did not like the idea and with the help of a common lawsuit (yes, with the help of eGold they started laundering money, although the company declared willingness to cooperate with the government) the project was closed. It was not difficult to do this, because eGold was a centralized service.
The same can be done with Tether, says Warwick and this is the main problem of the company. “The question is not whether the USDT is provided with fiat dollars, or not,” he says. – The problem is that there is a risk of interference in the affairs of Tether. This is a private company, it has bank accounts on which all these funds are stored, and if the regulator decides that Tether’s activities are not in compliance with the law, they will face a serious problem. If it happens with Tether, it’s not because of discussions in the community. ”
According to Warwick Tether can cover the same way as it did with eGold. Financial regulators understand what Tether is, and they are not too happy about it. The only reason regulators have not closed this project is poor awareness. Kane is sure that because of the fact that for the majority of external observers crypto market is still represented only by Bitcoin, many think that the other cryptocurrency projects are also decentralized. And this is not so. Therefore, it is worth keeping in mind that the manufacturer of USDT can cover at any time.
“I think that Bitcoin for Tether and other centralized crypto instruments is something like a large-scale smoke screen, Warwick said. – Regulators believe that these services are arranged according to one principle, that they can not be regulated. But the question is what will happen if the regulators realize that unlike Bitcoin, they can easily deal with centralized services. “
Warwick believes that the answer to this question can be decentralized stable coin. And it is better a few. Because whatever one may say and a day through Tether is $ 2.7 billion. But the stable coins launched by decentralized services are enough. This is kUSD from Kowala, and Dai from MakerDAO, and TUSD from TrustToken, and USDC from Circle, and Stronghold USD, and Stasis EUR and of course the Havven stable coin. So if Tether gets there, the catastrophe will not happen, but there will be a commotion.
“Centralized cryptocurrency exchanges have nothing to do with each other,- Kane said. – If one hacked, others continue to work. But Tether is an asset that unites a bunch of trading platforms. So if something happens to this company, we will get a domino effect. “
In order for this to happen, Warwick suggests switching from USDT to other, decentralized steebles.