Paolo Ardoino, Chief Technology Officer of Tether and Bitfinex, is confident that Tether will retain its status as the most widely used stablecoin despite the rapid growth of competitors like USD Coin (USDC).
“If you look at Tether’s volumes compared to the other stablecoins, they are insanely higher. On a bad day they are even ten times higher,” he emphasized.
According to a report by Arcane Research, USDC, the second largest stablecoin, has been growing at an impressive rate over the past year and could soon overtake Tether in terms of market cap. Ardoino is not concerned about that possibility, noting that USDC’s growth has slowed over the past month.
“In the last 30 days, Tether has picked up steam again,” he said.
According to Ardoino, one of Tether’s key competitive advantages is its focus on people who have difficulty accessing financial services.
“Tether is really perceived as an instrument of freedom, as a solution, as a tool that helps everyone. It’s not a tool for the banks, it’s not a tool for Wall Street.”
While USDC has gained a reputation for being more transparent and better regulated than Tether, Ardoino believes this is a false narrative. As the Chief Technology Officer pointed out, since January 2021, Tether has been publishing breakdowns of its reserves, including the rating of its trading papers.
“I think that as Tether we are in really good shape in terms of transparency,” argued Ardoino.
According to Ardoino, the rapid development of digital central bank currencies or CBDCs will not make stablecoins like Tether irrelevant. In his opinion, CBDCs will likely run on centralized blockchains that don’t offer the same flexibility as open, public blockchains.
“One of the things people are excited about public blockchains is the programmability. They can build more complex behaviors,” he said.
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https://cointelegraph.com/news/tether-is-gaining-momentum-against-competing-stablecoins-says-tether-cto Tether is gaining momentum against competing stablecoins, says Tether CTO