Ardoino is not worried that another stablecoin may grow at an impressive rate, as Tether has regained momentum over the last month. The executive revealed that the Swiss city of Lugano would adopt BTC and USDT as de facto legal tender.
Paolo Ardoino, the CTO of Tether and Bitfinex, is confident that Tether (USDT) will remain the most widely used stablecoin. He made that prediction despite the rapid growth experienced by its competitors in the market.
The executive said that the trading volumes are unbelievably high compared to the other stablecoins. He highlighted that they are ten times higher even on a bad day.
Curiously, Paolo Ardoino expressed that he is not worried about the possibility of another stablecoin growing at an impressive rate. The developer recalled that Tether had regained momentum over the last 30 days.
Ardoino considers that the focus of Tether on people who have difficulty accessing financial services is one of its advantages.
The analyst thinks that a stablecoin should be an instrument of freedom, a solution, and a means to help everyone. He commented that it should not be a tool for banks or Wall Street but for people.
Paolo Ardoino Comments on Tether and Other Stablecoins
Paolo Ardoino recently pointed out that people see the stablecoin Tether as a reserve asset in countries like Turkey, Venezuela, and Argentina. He expressed that he was sad because it should serve as a means of exchange.
He considers that Bitcoin, DEXs, and CEXs are financial solutions for nearly 2 billion unbanked people worldwide.
Likewise, Ardoino said it is all fun and games if a stablecoin has a market capitalization of USD 5 billion or USD 10 billion. However, that may change as its market capitalization increases to levels never seen before.
TerraUSD (UST) is the third-largest stablecoin by market capitalization after Tether (USDT). However, the native stablecoin of the Terra network has grown significantly in a relatively short time. It went from USD 180 million in early 2021 to over USD 17 billion in market capitalization since April 18th.
Ardoino explained that a liquidation with an algorithmic stablecoin the size of UST still allows handling this market. However, that is different with a stablecoin having USD 80 billion or USD 100 billion of market capitalization like Tether, mainly backed by digital assets. He finds it hard to determine what may happen and whether there will be enough liquidity to support that cascade.
Ardoino Talks about the Plans of Lugano to Adopt Cryptocurrencies
The CTO of Tether and Bitfinex also revealed the adoption plans for the pro-crypto city of Lugano in the south of Switzerland. In March, that municipality announced it would adopt Bitcoin (BTC) and Tether (USDT) as de facto legal tender.
The city of Lugano would be one of the first to implement the payment with cryptocurrencies. Citizens and companies would be able to pay their annual taxes and all goods and services with crypto assets. The administration of Lugano understood that it would be crazy not to take advantage of the opportunity that cryptocurrencies offer.
By Alexander Salazar
