Key points:
- Tether Announces Launch Plan for Stablecoin Tied to the British Pound
- What Are Stablecoins?
- What is Tether?
Tether is a cryptocurrency stablecoin, which is pegged to the US Dollar, but has now announced a Tether Token pegged to Sterling, that is to the GB Pound, called GBP₮. Here we look at this development as well as giving some background colour to Tether and more broadly stablcoins.
Tether Announces Launch Plan for Stablecoin Tied to the British Pound
In late June 2022, Tether announced in a blog post and Tweet that will release a crypto token tied to the value of the Great British Pound (GBP) as they look to push into new stablecoins (see below on what stablecoins are). The new token, dubbed GBP₮ will be offered to trade from early July on the Ethereum blockchain. Already in their offering, Tether offers tokens pegged to the US Dollar, the Euro, the Chinese Yuan and more recently the Mexican Peso.
The Chief Technology Officer at Tether, Paolo Ardoino said, “Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins.” Previously, the UK has announced plans under existing e-money legislation to regulate stablecoins and as the Bank of England is in discussions about whether to launch a digital sterling.
Also Read: How to Buy Bitcoin in the UK
What Are Stablecoins?
Stablecoins are cryptocurrencies whose value are pegged to another currency or commodity or even to a financial instrument. This fast-growing breed of cryptocurrencies try to keep their token’s price stable, usually by tying or pegging it to the price of a traditional currency, such as the US Dollar. In doing so, stablecoins aim to offer an attractive alternative to the often extreme volatility that is seen in the more popular cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH).
What is Tether?
Tether belongs to the realm of stablecoins and offer Tether tokens which are assets that can move across the blockchain as with other digital currencies but that are pegged to real-world currencies on a one-to-one basis. These currencies include the US Dollar, the Euro, the Chinese Yuan, the Mexican Peso, Gold and in the near future the GB Pound. As of June 2022, Tether is the third largest cryptocurrency (after BTC and ETH), and the largest of the stablecoins. To learn more about investing or trading Tether, see our blog, How to Buy Tether.