Tether

S&P Global Ratings has downgraded Tether’s USDT to its lowest stability level, citing insufficient reserves to cover a major Bitcoin price drop and a growing portfolio of risky assets.

The European Central Bank has issued a stark warning about the risks posed by the rapidly growing stablecoin market, citing potential capital flight from eurozone banks and the threat of a ‘digital bank run’ that could trigger a global financial crisis. However, industry figures counter that stablecoins, with their full reserve requirements, could actually enhance financial stability.