According to CryptoPotato, Deutsche Bank analysts have predicted that most stablecoins are likely to fail. This conclusion was drawn following an internal analysis of 334 currency pegs over the past 200 years. The analysts stated that the few foreign exchange pegs that have maintained their value since 1800 operated with credibility, reserves, and a tightly controlled environment, attributes they believe most stablecoins lack.
Tether (USDT), the world's largest stablecoin with a market cap of $110 billion, was singled out for criticism. The analysts described it as a monopoly in the stablecoin market, characterized by speculation and a lack of transparency. Despite Tether regularly publishing reserve attestation reports with assistance from BDO, the fifth-largest accounting network globally, it has not yet undergone a full audit from a Big Four accounting firm. Prior to publishing its attestation reports, Tether was compelled to pay $41 million in fines to the Commodity Futures Trading Commission (CFTC) for misleading statements about its reserve composition.
The Deutsche Bank study also highlighted the importance of macroeconomic factors for stablecoin issuers. The analysts noted that issues around governance and speculative forces could indicate when there's a possibility of de-pegging. In response to the report, Tether argued that Deutsche Bank relied on vague assertions without concrete data to forecast a decline in stablecoins more broadly.
