In March of this year, Hong Kong-based Tether and US Federal Reserve both issued money, with Tether surpassing the Fed in amount. Tether produced a total of $9,700,000,000 worth of stablecoin during the same month, compared to $400 billion from the Federal Reserve. This huge production of stablecoin from Tether is suspected to be linked to the tumultuous events unfolding in the world of traditional finance and banking. In recent months, there have been banking issues surrounding Silicon Valley Bank (SVB), Silvergate, Signature Bank, and First Republic Bank, as well as the fall of Swiss-based Credit Suisse and its bailout by UBS. This, accompanied with an onslaught of related attacks in the media, has led to a huge investor demand for digital currency assets, including stablecoin.

The Wall Street Journal has been among those attacking Tether. On March 3, they released an exposé which delved into the connections between Tether and sister exchange Bitfinex and their efforts to remain connected to the traditional banking system. The Journal accused Tether backers of fraud, falsifying documents, and using shell companies in attempts to evade the Justice Department investigation, led by the Manhattan US District Attorney’s office.

Responding to such allegations, Tether released a statement on their website claiming the Journal had been selective about what firms to investigate, and that their coverage was biased against Tether. They declared that despite legacy media and ongoing investigations, they remained committed to building a global financial infrastructure.

The events of March indicate an important trend, that of investors and businesses increasingly relying on cryptocurrency for financial stability and security. While the legitimacy of certain cryptocurrencies and organizations may be defended in court, the scale of their production and use clearly speaks for the success and importance of the digital currency industry.



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