Tether CEO expects stablecoins to prevail even with the CBDC wave

• CBDC leverages private blockchain for technology infrastructure
• However, it is not currently issued on private chains like Stablecoin.

Paolo Ardoino, Tether’s Chief Technology Officer, has dismissed concerns that the central bank’s digital currency (CBDC) will affect the currently offered private stablecoins. Ardoino was talking about the debate that has been happening in recent months as more countries have declared their ambitions at the CBDC.

CBDC strengthens banking activity

Ardoino explaining his view Engaged His Twitter follower took the view that the CBDC wasn’t built to digitize fiat currencies, as most modern transactions are already digitized.

Rather, he argued that these government-controlled digital currencies would essentially replace traditional payment systems and leverage private blockchains for state-of-the-art, cost-effective technology infrastructure.

“There are few thoughts about the CBDC. FIAT is already mostly digital, but it relies on the old tech infrastructure that was built 30 years ago and is maintained with rubber and bands. It also costs a lot and is huge. It requires a lot of maintenance and is not standardized at the capillary level. “ He wrote on his Twitter page.

As an alternative to traditional payment systems such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the Tether CTO makes CBDC transfers as easy as wiring, with government-controlled currencies to banks and among other use cases. He said he would be able to do it. cash.

The CBDC also facilitates the majority of bank credit and debit transactions.

“The CBDC is based on the idea that Tether created the first stablecoin eight years ago. The CDBC has replaced SWIFT and others, banks have accepted transfers via the CBDC as any wire, and the CBDC Most of the credit / debit card flow, especially on weekends, “ He added.

There are also restrictions

Computer scientists said they believe the CBDC will not shake off Stablecoin. Private tokens remain appropriate as more and more countries move to government-issued digital coins.

“CBDC will use the private blockchain as the latest cost-controlled technology infrastructure. The CBDC will never be issued on a favorite chain and Private Stablecoin will continue to accommodate its use cases.” He gave his opinion.

according to data Provided by the CBDC Tracker, 87 countries have debuted crypto-related initiatives. Nine of them have already launched tokens, and another 15 are piloting the project.