Tether CEO Criticizes BIS Warning on Stablecoin Risks

Tether CEO Paolo Ardoino responded to BIS General Manager Pablo Hernández de Cos regarding concerns over stablecoin financial stability. Ardoino argued that stablecoins are fundamentally different from tokenized bank deposits, noting that stablecoins are backed 100% by highly liquid assets like U.S. Treasury bills. In contrast, he stated that tokenized bank deposits operate under a fractional reserve model, which he identified as the true source of systemic risk.