The rollout of central bank digital currencies (CBDCs) will not affect the stablecoin market. This was stated by Paolo Ardoino, the chief technology officer of Tether, the company behind USDT.
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— CBDCs will use private blockchain as modern and cost-controlled tech infrastructure
— CBDCs won’t be issued on your favourite chain, private stablecoins will continued to serve that use casePoint being: tech evolves but nothing actually changes.
Only #bitcoin is our edge.— Paolo Ardoino (@paoloardoino) March 10, 2022
“CBDCs will use private blockchains as modern and cost-controlled technology infrastructure. CBDCs will not be issued on your favourite networks; private stablecoins will continue to serve that use case,” he wrote.
According to Ardoino, fiat money is already ‘mostly digital’ today. However, traditional institutions use outdated technological infrastructure, the maintenance of which costs substantial resources. In addition, such a system is ‘not standardised at the capillary level’, he added.
Ardoino noted that CBDCs are based on an idea that originated at Tether eight years ago. In his view, central-bank tools could displace SWIFT and archaic services, but would not replace Bitcoin and other cryptoassets.
In July 2021, the Fed Chair Jerome Powell expressed a contrary view. He questioned the need for stablecoins and cryptocurrencies after the introduction of a digital version of the dollar.
As reported in January 2022, the Fed presented a report on the results of CBDC research. The regulator noted that the emergence of a distinct digital form would help the US dollar maintain its status as the world’s reserve currency.
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