Tether and Bitfinex’s chief technological officer, Paolo Ardoino, discusses why USDT will maintain its dominance in an increasingly competitive stablecoin market.
Despite the rapid expansion of competitors like as USD Coin, Paolo Ardoino, chief technology officer of Tether and Bitfinex, is sure that Tether will maintain its position as the most widely used stablecoin (USDC).
“When you compare Tether volumes to the rest of the stablecoins, they are outrageously higher.” On a bad day, they’re even ten times higher,” he pointed out.
According to Arcane Research, USDC, the second-largest stablecoin, has been rising at a rapid pace over the previous year and may soon overtake Tether in terms of market size. Ardoino is unconcerned about this possibility, pointing out that USDC growth has slowed in the recent month.
“Tether has recovered momentum in the last 30 days,” he remarked.
One of Tether’s primary competitive advantages, according to Ardoino, is its focus on people who have difficulty obtaining financial services.
“Tether is truly regarded as a liberating tool, a solution, and a tool that benefits everyone.” It’s not a tool designed for banks, and it’s not a tool designed for Wall Street.”
While USDC has a reputation for being more transparent and well-regulated than Tether, Ardoino believes this is a myth. According to the chief technical officer, Tether has been disclosing breakdowns of its reserves, including the rating of its commercial papers, since January 2021.
“I think we, as Tether, are in extremely good form in terms of transparency,” Ardoino argued.
According to Ardoino, the rapid development of central bank digital currencies, or CBDCs, would not render stablecoins like Tether obsolete. CBDCs, in his opinion, will most likely run on centralized blockchains, which will not provide the same flexibility as open, public blockchains.
“One of the features that attracts individuals to public blockchains is their programmability.” “You may create more complicated behaviors,” he explained.