Over the course of the past few years, stablecoins have become one of the most important constituents of the crypto ecosystem, and Tether is certainly the most well-known. The stablecoin is backed by several fiat currencies, and over the years, it has worked as an excellent substitute for fiat currencies for crypto traders.
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In a new development, it has now emerged that Tether is all set to launch a new cryptocurrency that is going to be backed by gold. The cryptocurrency in question is “Tether Gold,” and according to reports, it could be launched by the time Christmas comes around this year.
In this regard, it should be noted that the timing of the launch is quite interesting. It is now a well-established pattern that cryptocurrencies often enjoy a rally of sorts during the festive season, and hence, the launch around Christmas could be a strategic move. That being said, any rally in the gold-backed stablecoin can only come about if the project is interesting.
The Chief Technology Officer of Tether, Paulo Ardoino, spoke about the new project: “Current macro-finance uncertainty brings the need for traditional instruments to hedge the risk of our customers, especially in the crypto industry.” He went on to state that gold has been used as a hedge against market risks for a long time.
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That being said, it should also be pointed out that Tether’s new cryptocurrency might not be an entirely novel product. There have been reports that there are other crypto-based platforms that are also working on similar products. For instance, it has been reported that Coin Shares, a company that is involved with stablecoins, has been exploring the possibility of launching a gold-backed cryptocurrency. While it is true that Bitcoin is often referred to as ‘digital gold,’ it could be ‘Tether Gold’ that could prove to be a literal pioneer in that particular field.
What do you think?
Featured image: DepositPhotos © scanrail
