Ex-Tether Exec Quigley Disappointed in Current Management, Urges Audits


A co-founder of Tether, the $41 billion company behind the tether stablecoin, said the company and its reserves should be audited at least quarterly, and maybe even monthly.

“Every time you print a tether, you should have a dollar being added to that cash pool,” said William Quigley, who left the project in 2015 and now runs the non-fungible token (NFT) exchange WAX. “Audited once a month, once a quarter.”

How To Get Free Crypto  

The comments on CoinDesk TV come after Tether last month agreed to a $18.5 million settlement with the New York Attorney General on charges of an alleged attempt to hide financial losses. The company admitted to no wrongdoing while agreeing to provide quarterly reports on the composition of its reserves.

Related: Bitcoin Mining and the Environment

Tether’s dollar-linked stablecoin, USDT, has become a key form of liquidity in cryptocurrency markets – transferred between exchanges and wallet addresses to purchase bitcoin and other digital tokens. In February, analysts with JPMorgan Chase, the largest U.S. bank, said a loss of faith in tether might pose systemic risks to the bitcoin market.

Quigley suggested Tether avoid mixing operational cash with custodial cash. “I don’t understand why they made it so difficult,” he said. “They’re their own worst enemy.”

It’s not just the issue of trust standing in the way of tether’s growth. Eventually, the issuance of digital currency by governments could supplant tether, according to Quigley.

Coinbase Banner  

“It would be easier for banks and financial institutions to hold something issued by government versus something held by a private company,” Quigley said. “How hard is it to get an audit done?”

Related: Brian Brooks: Does the Digital Dollar Have to Be Built by the Government?

A Tether representative didn’t immediately return an emailed request for comment.

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Go to Source
Author: CoinDesk

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.