October 8, 2024<\/p>\n\n\n\n
By Our Correspondent<\/p>\n\n\n\n
Tether’s USDT stablecoin, recognized as the most widely utilized cryptocurrency globally, has experienced periods of trading at a discount relative to the dollar since late September, as reported by Dessislava Aubert, a senior research analyst at the blockchain data firm Kaiko.<\/p>\n\n\n\n
This discount has emerged concurrently with a series of monetary easing measures implemented by China’s central bank, aimed at addressing a deteriorating economic outlook that has led to a surge in stock prices.<\/p>\n\n\n\n
Stablecoins are cryptocurrencies typically pegged at a 1-to-1 ratio with assets like the dollar. They serve as a medium for transactions and provide a safe haven from the often unpredictable price fluctuations associated with cryptocurrencies such as Bitcoin.<\/p>\n\n\n\n
Livio Weng, the chief executive officer of the Hong Kong-based crypto exchange Hashkey, noted, “If traders are hastily converting back to fiat currency, it can be inferred that they are engaging in panic buying of Chinese stocks.”<\/p>\n\n\n\n
According to Aubert from Kaiko, the lack of USDT\/Chinese yuan trading pairs on cryptocurrency exchanges due to regulatory restrictions has positioned the dollar as the primary metric for assessing market activity. The observed slight discount indicates a heightened demand for dollars and a corresponding sell-off of Tether.<\/p>\n\n\n\n
While it is challenging to quantify the extent of USDT selling pressure originating from Chinese investors on exchanges, other platforms provide a more definitive perspective.<\/p>\n\n\n\n
Binance’s peer-to-peer marketplace indicates that merchants dealing in Chinese yuan are offering over-the-counter price quotes for USDT in the range of 6.78 to 6.98 yuan, whereas the offshore yuan is trading at 7.07 per dollar in the conventional currency market.<\/p>\n","protected":false},"excerpt":{"rendered":"
October 8, 2024 By Our Correspondent Tether’s USDT stablecoin, recognized as the most widely utilized cryptocurrency globally, has experienced periods of trading at a discount relative to the dollar since late September, as reported by Dessislava Aubert, a senior research analyst at the blockchain data firm Kaiko. This discount has emerged concurrently with a series […]<\/p>\n","protected":false},"author":4,"featured_media":6456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6454","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized"],"yoast_head":"\n