In a crypto sector in full turmoil, a high-level confrontation is now raging. On the one hand, Ripple points to the threat that the American authorities would pose to Tether, the issuer of the popular stablecoin USDT. On the other hand, the accused firm responds by denouncing the dubious motivations of its critic. A standoff at the summit which could well cause a devastating earthquake.
Ripple sounds the alarm on the anti-Tether threat
The bombshell was recently dropped by Brad Garlinghouse, CEO of Ripple, during a widely listened to podcast. According to the manager, “it is clear” that the American government would now attack Tether, the issuer of the world’s first stablecoin, USDT.
A warning of the highest gravity at a time when the entire ecosystem fears the advent of a new “black swan” with devastating potential, after the shattering implosion of FTX at the end of 2022. And Tether, given its weight considerable on the crypto markets, would be at the top of the list of potential targets according to Ripple.
Certainly, Brad Garlinghouse did not supported his remarks of no concrete element. His speech nonetheless resonates strongly within a crypto community once again on alert.
Tether denounces anti-competitive aims!
What is now established is that Ripple aims to launch its own stablecoin backed by the US dollar very soon. A new digital currency which would therefore compete head-on with the juggernaut Tether in its preferred strategic market.
Therefore, would Brad Garlinghouse's thunderous accusations not be intended to destabilize in advance a future major rival in this particularly lucrative sector? A basely self-serving maneuver that the Tether company obviously does not fail to vigorously denounce.
In a scathing denial, he also increased his appeasement gestures towards regulators. Tether notably recalled that it now publishes quarterly audits on its reserves guaranteeing USDT. But also that its collaboration with the American authorities had enabled the freezing of nearly $640 million in illicit assets in recent years.
In this standoff that looks like a regulatory takeover, it is difficult to determine who will emerge victorious between Tether and Ripple. But one thing is certain: the future of the USDT juggernaut will be absolutely crucial in the future evolution of cryptos. One thing is certain: we are certainly not finished being shaken by the turmoil caused by this confrontation that resembles a pitched battle for the supremacy of stablecoins!
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