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The CTO of Tether, Paolo Ardoino, has dismissed claims that the advancement of central bank digital currencies could affect privately issued stablecoins.
Source: Twitter
BTCUSD is down -6.93%
The executive says that CBDC will only replace centralized payment systems and will use private blockchains to settle most transactions.
Ardoino maintains that the CBDC does not aim to digitize the fiat currencies because most current transactions are already digital.
Tether CTO thinks that privately issued stablecoins like USDT will remain useful in the wake of government-backed digital currencies with cross-chain options.
The sentiments come amid a debate in the US that CBDC may replace stablecoins even as authorities move to tighten sector policies.
Data from Atlantic CBDC trackers show that 86 nations are already working on their central bank-issued stablecoins, with nine having launched and fifteen are at the pilot stage.
China is testing its CBDC while France and Switzerland have begun cross-border trials. The US is yet to conclude progress on the digital dollar.
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