A parallel financial system is being created and it’s going to be a problem

An article in Coindesk describes how Chinese business people in Russia now use a relatively little known and easy to use cryptocurrency, Tether, to repatriate profits to China, bypassing most controls and restrictions, creating a constant flow of capitals between both countries and creating a de facto parallel financial system.

How has Tether managed to make up 80% of cryptocurrency operations in Moscow’s over-the-counter trading desks? Because it’s a stablecoin theoretically anchored on a one-to-one exchange rate with the dollar and has pretty much been able to held that rate. The fact that currency’s stability is debatable, given that apparently, only around 70% of its assets in circulation are actually backed by dollar reserves seems to be of no concern to users, who prefer the risk of having to trade with a bitcoin whose exchange rate swings are difficult to predict. Considerations about the fact that 80% of the stablecoin is owned by just 300 addresses seem to be negligible too. Tether’s appeal lies principally in the fact that provides a way to move money around easily without detection.

The growing use of cryptocurrencies are rapidly creating a parallel financial system, with traditional procedures limited to trying to restrict it through specific limitations or restrictions that only…