Paolo Ardoino, Chief Technology Officer (CTO) of Bitfinex and Tether, says recent pressures for governments to adopt Bitcoin Lifestyle regulatory pathways to digital central bank currencies will not negatively affect stablecoins like Tether.
„In the long term, we believe that Tether will continue to exist alongside CBDCs,“ Tether’s CTO told Cointelegraph, citing the token’s performance on several different blockchains, including Algorand, Ethereum, EOS, Liquid Network, Omni and Tron. „Tether will continue to be sued as long as it continues to serve and unify a variety of ecosystems.
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Governments drive CBDCs
Cointelegraph reported on July 15 that the Japanese government was planning to include consideration of a central bank digital currency (CBDC) in its official economic plan, shortly after the Bank of Japan announced that it would begin experimenting with a digital yen. Around the world, Bank of England Governor Andrew Bailey said the institution was also considering issuing a digital pound.
Ardoino said it was unlikely that CBDCs in any country would replace Tether (USDT) as the token has dwarfed rival stablecoins such as the USD Coin (USDC) and the USD Binance (BUSD) in terms of market capitalization, trading volume and number of users.
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Some digital yuan experts agree. Cointelegraph reported that Charles Yang of Genesis Block said China could not easily stop the circulation of USDT, despite any threat it might pose to capital controls and supervision. Hundreds of millions of dollars in Tether are traded every day in the Asian nation.
Second highest market capitalization?
After Tether surpassed XRP to become the third largest token by market capitalization in May, a recent Bloomberg report predicted that the USDT could eventually move to Ethereum (ETH) for second place. According to cryptanalysis firm Messari, the USDT currently has a market capitalization of approximately USD 10.3 billion.