Bitmex founder: Major banks will eventually erode Tether's business model

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Bitmex founder Arthur Hayes discussed the eventual demise of Tether and other stablecoin companies. Hayes explained that Tether's business model, which involves acquiring dollars and investing in government bonds, will ultimately be eroded when major banks like JPMorgan are allowed to issue fiat-backed stablecoins. Despite positioning itself as a standout product in the crypto market, Tether's dominance is only due to the lack of similar offerings from the traditional banking system in the United States, according to Hayes. He stated that when the U.S. Treasury allows traditional banks to issue stablecoins, the situation will change, and the legitimacy and support for stablecoins will no longer be questioned. Hayes predicted that banks like JPMorgan will replace Tether and other stablecoin companies, engaging in a similar game of interests as today.

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