Ripple's Stablecoin Launch to Boost Sector Credibility, Says Tether CEO
Summary:
Tether's CEO Paolo Ardoino supports Ripple’s decision to launch its own stablecoin, suggesting it may enhance the stablecoin sector's credibility. In Paris Blockchain Week, he stressed the need for strong competition among major firms to convince regulators of fiat-bound tokens' value. He sees Ripple's move as signifying room for more reliable fiat-bound tokens. Stablecoins, with an overall worth exceeding $130 billion as of April 2024, have found diverse uses from being part of centralized exchanges to DeFi platforms.
Paolo Ardoino, the CEO of Tether, has voiced support for Ripple's decision to introduce its own stablecoin, suggesting it could enhance the credibility of the stablecoin field. In an interview at Paris Blockchain Week, he stressed the importance of healthy rivalry among major contenders to convince regulators of the value of fiat-bound tokens. Arguing that Tether cannot be the sole provider, he emphasized the need for a stablecoin industry with multiple contributors.
The significance of stablecoins as a part of the broader cryptocurrency environment has grown. With an overall worth exceeding $130 billion as of April 2024, stablecoins have found diverse uses from being a key element of centralized exchanges to decentralized finance (DeFi) platforms.
Ardoino believes that having several reputable firms offering thriving stablecoin services underlines the sector's escalating relevance. He also suggests that Ripple's move to introduce a stablecoin later this year signifies sufficient space for more reliable fiat-bound tokens.
Ardoino points out the dominance of Tether (USDT) in the market, boasting a value of $108 billion as of April 17, and highlights that USD Coin (USDC) is the second-largest stablecoin with a market cap of $32 billion. He asserts that the widespread acceptance of stablecoins like USDT and USDC is primarily due to the rampant inflation and depreciation of global currencies.
He mentions the high inflation rates in Argentina, Turkey, Venezuela, Vietnam, and Brazil, and how citizens of these countries seek alternatives to their national currency. Moreover, Ardoino points out the two billion unbanked individuals, living on less than $300 per month, without access to traditional financial systems.
Ardoino further highlights that the rising popularity of digital wallets enables people to save in digital currencies like USDT or USDC. This success of these simple offerings indicates the harsh economic conditions globally. He argues that the Tether's circulating USDT is backed 106% by other assets and the firm plans to hold 100% reserves in U.S. Treasury bills, currently possessing approximately $90 billion of Treasury bonds.
Published At
4/17/2024 11:36:17 AM
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