The chief executive officer of the USDT issuer company confirmed that Stabelcoins will not face any threat because of the Central Bank Digital Currency (CBDCs) adoption.
USDT is the biggest Stablecoin in the crypto industry by 24 hours trading volume. Tether is a backend company of USDT. However in the past few years, many questions have been raised against the internal operations of Tether about the backed reserved funds but still, USDT is ranking at first rank as a first choice in the crypto community because of its first mover advantage.
On 10 March, Paolo Ardoino, the chief technology officer at Tether, shared his thoughts on the growing development works on Central Bank Digital Currency (CBDCs) in the world by different countries.
Paolo noted that fiat currencies are already digital Currencies but due to dependency on the 30 years old technology, these are inefficient and require huge maintenance.
On the adoption & better outcomes of CBDCs, he said that CBDCs are new concept-based currencies and they came into origin 8 years ago with the first Stablecoin, USDT, in the crypto industry. And further noted that many traditional inefficient systems will get replaced with payments via CBDCs wire.
“CDBC will replace SWIFT etc. banks will accept transfers via CBDCs as any wire. CBDCs will settle most of the credit/debit card flow, especially over the weekend.”
Through the last tweet, Paolo claimed that CBDCs projects are going to use a stablecoin based private blockchain network, not that Blockchain that we like. Through this statement, Tether CTO claimed that private Stablecoin blockchain networks will go through use cases not Ethereum or bitcoin like networks.
USDT under high pressure
The recent few years have been better for the crypto industry in terms of adoption and revolution. But with the evolution of this industry, many legal actions we saw in this industry on crypto companies.
Recently a US official claimed that Tether is going under a very big threat because Tether is not providing all the details & documents of its operations, for which government agencies are asking.
The Official also suggested the SEC agency take Tether as a priority case instead of a legal fight against Ripple.
Read also: $10M fine on BitMEX Co-Founder
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