Paolo Ardoino, Chief Technology Officer (CTO) at Bitfinex and Tether, says that The recent pressure on governments to introduce central bank digital currency regulatory paths will not adversely affect stable coins 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 various 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.”.
Governments sponsor CBDCs
Cointelegraph reported on July 15 that The Japanese government planned to include central bank digital currency (CBDC) in its official economic plan soon after the Bank of Japan announced it would experiment with a digital yen. Around the world, Governor of the Bank of England Andrew Bailey said the institution was also considering issuing a digital pound.
Ardoino said that CBDCs in a country were unlikely to replace tether (USDT) as the token outshone competing stable coins like USD Coin (USDC) and Binance U.S. dollar (BUSD) in terms of market capitalization, trading volume and number of users.
Some digital yuan experts agree. Cointelegraph reported that Genesis Block’s Charles Yang said China could not simply stop the USDT circulation despite a threat to capital control and supervision. In the Asian nation, hundreds of millions of dollars are traded in Tether every day.
Second highest market capitalization?
After Tether surpassed XRP to become the third largest token by market cap in May, A recent Bloomberg report predicted that USDT could eventually switch to Ethereum (ETH) to take second place.. According to the cryptanalysis company Messari, USDT currently has a market capitalization of approximately USD 10.3 billion.