Tether, the largest stablecoin globally, has criticized a recent report by Deutsche Bank that raised doubts about stablecoins' stability and the solvency of Tether. The report analyzed historical currency pegs and emphasized concerns about stablecoins being prone to instability and de-pegging.

The collapse of the TerraUSD stablecoin in May 2022, resulting in a substantial market loss, highlighted the risks and volatility associated with stablecoins. Greater transparency and regulation were recommended by the report to mitigate these risks and improve oversight.

Deutsche Bank specifically targeted Tether, expressing worries about its solvency and its impact on the crypto derivatives market. A potential 'Tether peso moment' could result in significant losses, affecting traders and the broader crypto ecosystem.

A consumer survey conducted by the Bank showed skepticism regarding the future of stablecoins, with only 18% believing in their potential for success. Concerns were also raised about Tether's dominance in the stablecoin market and its influence in the derivatives sector.

Tether rejected the report, criticizing it for lacking evidence and rigorous analysis, arguing that it didn't provide sufficient data to support its claims about the decline of stablecoins.