BIS Questions Stability of Stablecoins; El Salvador's BTC ATMs to get Upgrade; Wintermute CEO Accuses NEAR and Aurora
Summary:
The Bank for International Settlements (BIS) has cast doubt on the reliability of stablecoins as a store of value. In contrast, El Salvador's Bitcoin ATM network, managed by Athena Bitcoin, plans to adopt the Lightning Network upgrade. Meanwhile, conflict brews over an $11 million stablecoin swap deal, with Wintermute's CEO, Evgeny Gaevoy, accusing the NEAR Foundation and Aurora of failing to fulfill their agreement.
The International Bank for Settlements (BIS) casts doubt on stablecoins' ability to serve as a reliable repository of value. At the same time, Bitcoin (BTC) cash machines in El Salvador are set to benefit from the Lightning Network upgrade. Additionally, the CEO of Wintermute has publicly voiced his discontent with NEAR Protocol and Aurora, accusing them of retreating from an $11 million stablecoin exchange agreement.
The BIS, popularly known as the central bank's bank, expressed in a recent report that stablecoins haven't lived up to their expectations of stability. The analysis, carried out over almost four years, showed that stablecoins, backed by fiat currencies only, have managed to maintain their pegging 94% of the time. Cryptocurrency and commodity-backed stablecoins have been less successful, with peg ratios of 77% and 50% accordingly.
The international organization remarked that none of the stablecoins it evaluated managed to maintain their closing prices consistent with their pegging. Stablecoin market has seen significant growth in the past four years, being dominated by the likes of Tether (USDT) and Circle's USD Coin (USDC).
In other news, Athena Bitcoin has announced plans to incorporate the Lightning Network into its 100 Bitcoin ATMs in El Salvador by December 2023. Athena Bitcoin Global and Genesis Coin have already brought into effect the Lightning Network across their tech framework, with plans to execute it initially in El Salvador, and then all over Latin America. By the first quarter of 2024, the remaining ATMs across the country will get a Lightning Network Upgrade.
In a related development, the CEO of Wintermute, Evgeny Gaevoy, alleged that the NEAR Foundation and Aurora reneged on a deal to exchange $11 million worth of USN stablecoins for FTX. Gaevoy revealed in a Twitter post that when Wintermute applied for redemption, NEAR "did not keep to their obligations'' and promised Wintermute just a fifth of the $11 million. Wintermute, he says, is still waiting for its USDT after two and a half months. Gaevoy has indicated that he will explore all legal options against NEAR and Aurora unless the NEAR Foundation completes the redemption.
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Published At
11/8/2023 7:22:37 PM
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