Paolo Ardoino, chief technology officer at Tether, believes that increased developments around the global central bank digital currency (CBDC) will not affect the role of privately held stablecoins.
Ardoino shared his comments on Twitter about the growing conversation of CBDCs and their role in the current payment system. He said the CBDC will replace the older centralized payments network SWIFT and use private blockchains to fill most transactions.
He went on to explain that the CBDC isn’t as much about digitizing fiat currencies as it used to be. Because most modern transactions are digital. The primary goal of the CBDC is to use the private blockchain as a cutting-edge and cost-controlling technology infrastructure. Most bank transfers and credit/debit card transactions are settled through the CBDC.
Tether CTO claims that private stablecoins such as USDT will remain relevant even in the era of government-issued digital currencies, as these stablecoins will provide users with options to transfer across networks. And it will be available in multiple blockchains of their choice, which the CBDC cannot.
Ardoino’s remarks have been fueled by growing debate over whether the CBDC will diminish the role of the private stablecoin sector, as well as debate in the United States following calls from lawmakers to regulate the stablecoin market.
There are currently 86 countries in the process of developing a digital currency like the CBDC, with more than 100% since May 2020, and out of these 86 countries, 9 have already launched a CBDC, while 15 are in the range of cryptocurrencies. Navigation
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