- Tether introduces a new stablecoin backed by gold
- Bitcoin (BTC) and gold serve a similar purpose
Bitcoin News Today – There is a growing number of stablecoins backed by gold in the digital currency world. Recently, Tether decided to join the growing list by adding a new one to the mix. Tether just announced a new stablecoin backed by gold.
Tether Introduces a Gold-Backed Stablecoin
There seems to be something about Christmas that either brings floor-scrapping of great renown gutter wave to the digital currency space. This is because by the time Christmas rolls out this year, the crypto space could be welcoming a new Tether Gold digital currency. It was also around Christmas, in 2017, when the world’s largest digital currency by market cap hit its all-time high of about $20k.
Tether (USDT) Price Today – USDT / USD
Those memories are less fresh than the price trend of Bitcoin in the last Christmas when it lost a considerable fraction of its value and plunged to the $3k range. Nevertheless, the Chief Technology Officer of Tether and Bitfinex – Paolo Ardoino – is super excited about how Tether Gold is going to influence the digital currency space. In a statement, he said:
“Current macro-finance uncertainty brings the need for traditional instruments to hedge risk of our customers, especially in the digital currency industry. Gold has been, historically, an important asset for risk contingency.”
The new product of Tether comes at a time when many digital currency-based platforms seem to be getting the same idea. For instance, Shares – a firm that dabbles in stable currencies – reportedly revealed its plans for a new stablecoin backed by gold. In a statement, the chairman of the London-based firm – Danny Masters – said:
“Gold tokens are appealing due to a confluence of events: weakening real interest rates and weakening national currencies combined with increasing regulatory clarity around non-security tokens and the national appeal of gold to investors.”
Bitcoin (BTC) and Gold Serve a Similar Purpose
Since its emergence, Bitcoin (BTC) has been compared to gold. Many members of the digital currency space have also referred to BTC as “digital gold,” including David Marcus. The comparisons made between both assets is that they both work to act as a hedge against some of the economic tension that can affect fiat currencies and commodities. Their values are not affected by economic turmoil. Hence, both assets are great when it comes to maintaining one’s wealth.
At the time of writing, there are about twenty different gold-backed digital currencies in the market, and more are yet to come.