Paolo Ardoino, chief technology officer of Tether asserted that CBDCs would replace the old payment systems and utilize private blockchain as a new and reasonable tech infrastructure. Paolo Ardoino is the chief technology administrator of Tether and he speculates that the thriving improvements around Central Bank Digital Currencies, CBDCs worldwide wouldn’t effect the position of private stablecoins. Ardoino on Twitter shared his opinion on the rising conversation around CBDCs and about their role in the payment system. He further cleared that CBDCs will only replace the old system as SWIFT and use private blockchains to achieve most transactions.
He also explained that CBDCs are not about digitizing the fiat currency, the main aim of CBDCs is to use private blockchain with reasonable infrastructure, where most of the bank’s transfers and credit or debit card transactions will be resolved through CBDCs. Tether CTO asserted that private stablecoins such as USDT will stay pertinent even in the age of government-issued digital currencies, private stablecoins would provide users with the choice to transfer across chains and would be accessible across numerous blockchains of their preference which CBDCs won’t do. As per the Atlantic CBDC tracker, 86 countries are in the process of formulating their sovereign virtual currency, with a boost of over 100% since May 2020. Out of these 86 nations, 9 countries have initiated their CBDC while 15 countries are in the pilot stage.
Among the world’s, China is overseeing the CBDC race with a completely functional digital yuan. Several European nations like France and Switzerland have begun cross-border examinations, while the U.S. is yet to confirm any agendas for a digital dollar.
Have a look at this- Developing Economies Looking at Stablecoins & CBDC to Address Weaknesses