Editorial Board
Tether and Trump Could Be a Dangerous Combination
Left unchecked, the stablecoin could threaten both national security and financial stability.
What could go wrong?
Photographer: Andrew Harnik/Getty ImagesPerhaps nothing encapsulates the perils of crypto better than Tether Holdings Ltd.
Tether is a so-called stablecoin. It addresses one of cryptocurrencies’ greatest drawbacks — extreme volatility — by mimicking the government-issued currencies crypto was supposed to replace. In return for actual dollars, it provides dollar-denominated digital tokens that can be sent across various platforms to anyone, anywhere without touching the regulated financial system.