During a panel discussion at the Proof of Talk conference, Diogo Monica of Haun Ventures suggested that stablecoins backed by reserves held at globally systemically important banks or short-term US Treasury bills may be safer than deposits at commercial banks. Monica highlighted that stablecoins offer better security as they are not liabilities for banks, unlike commercial bank deposits. However, stablecoins come with their own risks, as seen with Tether facing transparency and risk management issues. Despite Tether's efforts to provide reserve attestations, a full independent audit is yet to be produced. This lack of transparency has raised concerns in the crypto community, with some labeling Tether as a significant threat to the industry. As the debate on stablecoin safety continues, investors are urged to exercise caution and stay informed about the risks involved. Read more AI-generated news on: https://app.chaingpt.org/news