Bitstamp announces CEO for US and EURt despite regulatory concern over stablecoins
Customers in the Euro area won’t have to use another stablecoin as an intermediary before making a deposit as they can trade in their own fiat currency.
Bitstamp has launched the trading of Tether tokens pegged on euro (EURt) in times of growing regulatory concern over the role of stablecoins in the financial system.
This week, Treasury Secretary Janet Yellen urged regulators to move quickly to establish a regulatory framework for stablecoins as they already have plans to issue recommendations in the coming months.
Fed Chair Jerome Powell said last week that stablecoins are “growing incredibly fast”[…] “And if we’re going to have something that looks just like a money-market fund or bank deposit … we really ought to have appropriate regulation and today we don’t.”
In the meantime, Bitspamp is going forward with the euro-pegged stablecoin, providing a liquid, stable and trusted means of obtaining exposure to the single European currency.
The first beneficiaries of the EURt will be Bitstamp users that can now deposit euro (EUR) and swap, transfer or trade it to a stablecoin, while retaining the same value and without losing funds on Forex volatility.
Customers in the Euro area won’t have to use another stablecoin as an intermediary before making a deposit as they can trade in their own fiat currency.
Tether tokens pegged to USD (USDt) is the most popular stablecoin in the world despite its troubles with the law, namely the New York Attorney General, who ordered Bitfinex and Tether to shut down their operation in the state and disburse $18.5 million in penalties following several issues with its operation throughout the years.
Miha Vidmar, Chief Product Officer of Bitstamp, said: “Bitstamp’s priority is delivering certainty and stability to digital token investors – something that is particularly pertinent as volatility remains in the wider market. The listing of EURt, the first mainstream Euro-pegged stablecoin, will ensure our customers based in countries with the single European currency can trade with greater confidence, without losing on their overall purchasing power.”
Paolo Ardoino, CTO at Tether Operations Limited, said: “We anticipate a ready uptake of EURt on Bitstamp, providing its users with the benefits of the first euro-denominated stablecoin. Tether is sure to replicate the success of USDt with EURt. As a pioneer in technological innovation in the digital token space, Tether is always attuned to providing traders of digital tokens with products that fulfil genuine use cases, broadening the options at their disposal.”
In other news, Bitstamp has appointed Robert “Bobby” Zagotta to become its first U.S. chief executive officer.
Mr. Zagotta joins Bitstamp from Kraken, where he was chief commercial officer for more than three years. He’ll be replacing Hunter Merghart, who was the head and left the operator in June as he moved on to another challenge.
Julian Sawyer, CEO at Bitstamp, said the United States has a unique regulatory landscape and huge potential upside in the digital asset industry. That is despite the lack of regulatory clarity that not only is agreed among peers within the industry but also from key officials such as SEC Commissioner Hester Peirce and Elad Roisman.
