Polkadot Foundation backs dotUSD as primary stablecoin, triggers debate over USDT reserves

Polkadot Community Foundation (PCF) has submitted a governance proposal to officially recognize dotUSD as the preferred stablecoin within the Polkadot DAO, just days after dotUSD went live on the network. This initiative aims to position dotUSD as the main stable-value asset for the ecosystem, yet it has sparked controversy due to its reliance on Tether ‘s USDT for backing, rather than native DOT collateral as initially outlined in its concept. dotUSD officially arrived on Polkadot’s mainnet on October 8, receiving over 98% approval from voters and launching with a backing of 4.3 million DOT.

Source: CoinTurk News