What are the advantages and disadvantages of using SOFR in the digital currency industry?

1 answers

• Mar 08, 2022 · 3 years ago
  As a leading digital currency exchange, BYDFi recognizes the potential advantages of using SOFR in the industry. SOFR's transparency and reliability can help foster trust among market participants and provide a more accurate reflection of borrowing costs. However, it's important to acknowledge the potential disadvantages as well. SOFR's volatility may introduce uncertainty and impact borrowing costs, and the transition from existing benchmark rates to SOFR may require adjustments and coordination. Nevertheless, BYDFi is committed to staying informed about industry developments and working towards the adoption of best practices, including the evaluation of using SOFR in the digital currency industry.
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