The proliferation of central bank digital currencies (CBDC) will not affect the stablecoin market. Paolo Ardoino, CTO behind USDT, said this.
“CBDCs will use private blockchain as a modern and cost-controlled technology infrastructure. CBDCs will not be issued on your favorite networks, private stablecoins will continue to serve for these purposes,” he wrote.
According to Ardoino, already now fiat money is “mostly digital”. However, traditional institutions use an outdated technological infrastructure that costs a lot to maintain. Beyond that, such a system is “not standardized at the capillary level,” he added.
Ardoino noted that CBDCs are based on an idea Tether had eight years ago. In his opinion, the instruments of central banks will be able to displace SWIFT and archaic services, but will not replace bitcoin and other crypto assets.
In July 2021, the head of the Federal Reserve System (FRS), Jerome Powell, expressed the opposite opinion. He questioned the need for stablecoins and cryptocurrencies after the appearance of the digital version of the dollar.
Recall that in January 2022, the Fed presented a report on the results of studying the CBDC. The regulator noted that the appearance of a special digital form will allow the US dollar to maintain the status of the world’s reserve currency.