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Tether Will Launch a Stablecoin Pegged Against the British Pound Sterling

Crypto giant Tether announced its plans to launch a new stable coin this Wednesday. The new stablecoin will launch next month. It will be pegged against the British Pound Sterling. This move is rather challenging to the British government as they are coming up with plans to regulate cryptocurrencies.

Stablecoins provide a solid investment opportunity as they are much more “stable” as compared to popular digital currencies like Bitcoin, Ethereum, and Litecoin while packing all advantages of cryptos like being fully decentralized, etc. The way stablecoins do this is by being pegged against fiat currencies or other commodities like gold. This makes them much less volatile than cryptos. Volatility is the single biggest problem with coins like Bitcoin, Ethereum, etc. Several stablecoins have been introduced by crypto firms over the last couple of years.

However, stablecoins can also become prey to coin value fluctuations, especially if it is based on the assets of a volatile coin. Recently, terraUSD, a stablecoin got to an absolute zero and was delisted from leading crypto exchanges. Thus, investors need to do some case studies and find out the assets on which a stablecoin is based before deciding to invest in one.

Tether already has a dollar-based coin in the market. It is one of the largest stablecoins available today and has a total of $68 billion in circulation.

The fall of terraUSD and its sister currency caused a massive ripple in the crypto industry. It sparked off a massive selloff among investors of almost currency in the world. This selloff caused tether’s dollar-based stablecoin to break its 1:1 peg with the US Dollar which shook investors’ faith in the crypto firm.

The British government will be introducing measures to regulate cryptocurrencies. This plan will exploit the potential of crypto and blockchain technology to help customers in making more efficient payments. London was supposed to introduce rules to prevent stablecoin collapses in May. In the light of these events, Tether wants to set up a Pound Sterling-based stablecoin.

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