Paolo Arduino, CTO of Tether, believes that the increasing development of central banks’ digital currencies (CBDC) on a global scale will not really affect the role of private stack coins.
Ardoino Cente shared a thread on Twitter about the growing discussion about CBDC and their role in the current payment system. He said that central banks’ digital currencies would only replace older central payment networks such as SWIFT and use a private blockchain to carry out most transactions.
He went on to explain that central banks’ digital currencies are not designed to digitize fiat currency, as has already been done, given that most modern transactions are digital. The main purpose of central banks ‘digital currencies is to use the private blockchain as a modern, cost-adjustable technology infrastructure where most bank transfers and credit / debit card transactions are settled with central banks’ digital currencies.
Tether’s CTO argues that private stablecoins such as the USDT will remain relevant even in an era of government cryptocurrencies, and private stablecoins will allow users to convert between chains and be available on multiple blockchains of their choice, where the CBDC won. . I do not.
Tether’s CTO’s response follows a growing debate on whether CBDCs will reduce the role of the stablecoin private sector. The debate has gained momentum in the US following calls from several legislators to regulate the stablecoin market.
According to Atlantic CBDC tracking, 86 countries are currently developing their own superior digital currency, up over 100% since May 2020. Of these 86 countries, nine have launched their own digital currency and fifteen are in beta testing.
CBDC Global Development Tracker Source: Atlantic Council
Among the world’s largest economies, China is leading the CBDC race with a fully functional digital yuan that is currently being tested across the country. Several European countries such as France and Switzerland have begun cross-border experiments, while the United States has not yet completed any plans for a digital dollar.