{"headers":{"Content-Type":"application\/x-www-form-urlencoded"},"body":"source_lang=&target_lang=PT-PT&tag_handling=xml&split_sentences=1&preserve_formatting=1&text=Fitch%3A+Stablecoins+could+see+massive+impact+on+credit+market&text=According+to+ratings+agency+Fitch%2C+the+growth+of+stablecoins+in+the+cryptocurrency+market+could+damage+the+credit+market.&text=Rating+agency+Fitch+has+said+that+stablecoins+that+aren%27t+safely+backed+by+underlying+assets+could+pose+a+threat+to+credit+markets+in+the+case+of+expansive+selling+pressure.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0AIn+a+%3Ca+href%3D%22https%3A%2F%2Fwww.fitchratings.com%2Fresearch%2Ffund-asset-managers%2Fstablecoins-could-pose-new-short-term-credit-market-risks-01-07-2021%22+target%3D%22_blank%22+rel%3D%22noopener+nofollow+noreferrer%22%3Enote%3C%2Fa%3E+recently+released%2C+Fitch+noted+that+safely+backed+assets+and+stablecoins+offer+less+of+a+stress+on+the+financial+market+but+assets+that+are+not+fully+backed+could+have+a+long-term+impact+on+the+market.+Using+USD+Coin+as+an+example+of+a+stable+%3Ca+title%3D%22Is+Crypto+Trader+A+Scam%3F%22+href%3D%22https%3A%2F%2Fwww.coininsider.com%2Fcrypto-trader-review%2F%22+data-replaced%3D%22true%22%3Ecryptocurrency%3C%2Fa%3E+backed+at+a+1%3A1+ratio+as+a+fully+backed+asset%2C+Fitch+noted+that+there%27s+less+risk+but+there+might+still+be+room+for+concern+if+the+market+swings+suddenly+towards+the+digital+currency.+As+per+the+note%3A+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0A%3Cem%3E%22Fewer+risks+are+posed+by+coins+that+are+fully+backed+by+safe%2C+highly+liquid+assets%2C+although+authorities+may+still+be+concerned+if+the+footprint+is+potentially+global+or+systemic.%22+%3Cstrong%3EBold%3C%2Fstrong%3E%3C%2Fem%3E%0A%0AOn+the+other+hand%2C+other+tokens+like+Tether%2C+according+to+the+rating%27s+agency+is+less+safe+and+poses+a+risk.+This+is+because+stablecoins+make+use+of+fractional+reserves+which+could+adopt+higher-risk+asset+allocation.+According+to+the+report%3A+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0A%22%3Cem%3ETether%2C+the+largest+stablecoin+issuer%2C+has+disclosed+that+as+of+31+March+2021+it+held+only+26.2%25+of+its+reserves+in+cash%2C+fiduciary+deposits%2C+reverse+repo+notes+and+government+securities%2C+with+a+further+49.6%25+in+commercial+paper+%28CP%29.%22+%3Cstrong%3EBold%3C%2Fstrong%3E%3C%2Fem%3E%0A%0AThe+report+continued+to+offer+that+this+could+have+an+impact+on+the+market%2C+especially+if+there%27s+a+massive+investment+into+the+cryptocurrency+from+the+general+market.+Not+only+would+the+surge+have+an+effect+on+the+stablecoin%2C+but+the+underlying+collateral+would+also+likely+take+a+knock.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0A%3Cem%3E%E2%80%9CA+sudden+mass+redemption+of+USDT+could+affect+the+stability+of+short-term+credit+markets+if+it+occurred+during+a+period+of+wider+selling+pressure+in+the+CP+market%2C+particularly+if+associated+with+wider+redemptions+of+other+stablecoins+that+hold+reserves+in+similar+assets.%E2%80%9D%3C%2Fem%3E%0A%3Cdiv+class%3D%22article-subscription-widget%22%3E%0A%3Cdiv+class%3D%22article-subscription-widget__form%22%3E%3C%2Fdiv%3E%0A%3C%2Fdiv%3E","timeout":15}