USDT, a threat to the banking system? The opinion of Paolo Ardoino

Stablecoins have grown dramatically in 2020 and 2021, attracting many users and capturing a large share of the cryptocurrency market. Some of these digital assets have subsequently suffered repression from regulatory authorities while others have faced a lot of turbulence. Situations that have slowed the overall growth of this class of digital assets, but from which survivors like USDT have emerged invigorated to the point of being now considered as competitors by banks, even as a threat to global financial stability. Paolo Ardoino thinks that is not the case. Tether’s CTO recently said that the largest stablecoin issuer does not pose a threat to banks.

USDT: no threat to the banking system

Global financial stability is in jeopardy with the growth of stablecoins according to some analysts. Recently, Circle CEO Jeremy Allaire sounded the alarm and called for stablecoin legislation to save the dollar. Unlike the latter, Paolo Ardoino thinks there is no need to worry.

During a recent interview on The Wolf Of All Streets podcast, he said that Tether does not pose a threat to the banking system. This, despite being a major buyer and holder of US Treasuries.

“We are around 60 and a few billion in US Treasuries and when I explain the composition of our portfolio, I also explain that we are not here to try to steal work from banks in Europe or the United States. ” did he declare.

Different markets

Paolo Ardoino completes his clarification by highlighting the difference between the USDT market and that of traditional banking institutions. He says, “There are places in the world where 70% of people don’t have a bank account because the banking infrastructure is bad. They are forgotten or do not interest the banking infrastructure. This is where we thrive, so in a way we are not in competition with the American and European banking system”.

Paolo Ardoino also thinks that rather than being a threat, Tether creates more value for the US dollar. “We’re not stealing their jobs, we’re not stealing their fees, but we’re also attacking a market that is really important to the United States,” he insists.

Will this development be able to put an end to the fears and questions of analysts who are worried about the banking system? The days to come will situate us. For now, stablecoins can look forward to official recognition of their monetary status by the Fed.