Tether’s chief technology officer, Paolo Ardoino, feels that global advancements in central bank digital currencies (CBDCs) will have little effect on the function of private stablecoins
Ardoino contributed his two cents to expanding debate over CBDCs and their potential role in the present payment system in a Twitter thread. CBDCs, he said, CBDCs would only be used to replace outdated centralised payment networks like SWIFT, while private blockchains would be used to complete most transactions.
Tether’s CTO says that personal stablecoins like USDT will continue to be essential even in the era of government-issued digital currencies since personal stablecoins let customers to transmit among networks and are present on many blockchains of their preference, while CBDCs do not.
He further said that CBDCs aren’t about virtualizing fiat currency, which has already been done, given that the vast majority of modern-day transactions are digital. CBDCs’ main purpose is to employ private blockchains as a modern and cost-controlled digital infrastructure, with CBDCs settling the majority of bank transfers and credit/debit card transactions
China is now leading the CBDC competition in the nation, with a perfectly functioning digital yuan being tested across the country. Several European countries, like France and Switzerland, have begun cross-border experiments, but the United States has yet to formalise its plans for a digital currency.
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