Major stablecoin premium jumps above 8.5% after crackdown

The premium on Tether's USDT stablecoin jumped above 8.5% in India after local authorities cracked down on crypto remittance firms, The Economic Times reported on June 29.

Unlike volatile cryptocurrencies like Bitcoin (BTC), a stablecoin attempts to keep its value stable by being pegged to a "stable" asset like a fiat currency or a commodity.

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Tether's USDT, for instance, is pegged 1:1 to the U.S. dollar. One USDT holds the same value as one dollar. This is why it is also called a kind of "digital dollar."

With a market cap of $184.88 billion, USDT is the world's largest stablecoin that accounts for 59% of the total segment as per DeFiLlama.

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India's law enforcement and economic intelligence agency, the Enforcement Directorate (ED), early this month cracked down on five crypto payment firms based in Bengaluru under the Foreign Exchange Management Act, as per the report by The Economic Times.

The ED claimed that these firms

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/crypto/articles/major-stablecoin-premium-jumps-above-210000397.html)