Bitcoin Recovers to $38,000... US Concerns Over Tether and Facebook's 'DM'

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Despite Amazon's announcement that it has no plans to adopt Bitcoin payment, the cryptocurrency Bitcoin narrowed its losses and returned to the $38,000 range.

According to CoinMarketCap on the 27th (local time), Bitcoin is trading at $30,898, up 0.6% compared to 24 hours ago. Bitcoin had fallen to the $36,000 range after reaching $40,000 the day before, following Amazon's denial of Bitcoin transactions.

Ethereum is trading at $2,246, down 0.38%, and Dogecoin is trading at 20.2 cents, down 3.67%.

According to CoinDesk, Bitcoin trading volume reached $9.2 billion on the 26th, the first time since mid-June.

CoinDesk reported that the recent surge in trading volume may be a sign that interest in Bitcoin is rapidly recovering.

Bloomberg News reported that participants in a recent cryptocurrency response working group meeting held by U.S. government authorities expressed concerns about the stablecoin "Tether" and Facebook's proposed cryptocurrency "Diem."

The news agency cited sources saying that meeting participants were worried that Tether holds a large amount of commercial paper as its underlying asset.

Tether is a cryptocurrency pegged to the value of the dollar, and it is estimated that about half of its underlying assets, which amount to $60 billion, are commercial paper. This is why concerns are rising that Tether could effectively act as shadow banking.

Additionally, Facebook's proposed cryptocurrency Diem was also identified as a subject of caution due to the potential for significant usage growth based on Facebook users.

On the same day, Zhao Changpeng, CEO of Binance, the world's largest cryptocurrency exchange, predicted that if financial regulations expand in the future, the CEO position could be handed over to someone with more experience.

He anticipated that Binance would become a financial institution subject to regulatory supervision in the future and said, "We can find a CEO with more regulatory experience."

Binance, the world's largest exchange by trading volume, is currently under investigation by regulatory authorities in the United States, the United Kingdom, Japan, Canada, and other countries.

This content was produced with the assistance of AI translation services.