Stablecoin reserve audits can significantly enhance user trust by ensuring transparency and accountability. Regular, independent audits verify that the stablecoin's reserves fully back the circulating supply, reducing concerns about insolvency or mismanagement. Public disclosure of audit results fosters confidence, as users can confirm the issuer's claims. However, trust depends on the auditor's credibility, audit frequency, and the clarity of reports. Inconsistent or opaque audits may undermine confidence. For example, Tether's 2023 attestation by BDO reassured users, while past delays sparked skepticism. Effective audits, paired with real-time reserve data, can solidify user trust, but they must be rigorous and transparent to be impactful. 0 reply
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