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In the past week, particularly with the statements made by Binance CEO, Tether has become one of the main topics of discussion. During every FUD period, the largest stablecoin always gets its share of negativity. Once again, negative allegations regarding Tether are dominating the cryptocurrency markets.
PayPal and Tether
Tether’s CTO, Paolo Ardoino, commented on PayPal’s recent stablecoin move. Tether is currently the third largest cryptocurrency and the largest stablecoin in terms of market value. Ardoino argued that the latest PYSDC move would not affect their dominance.
“We do not expect any impact on USDT.”
Ardoino stated that this was because PayPal’s stablecoin (PYUSD) was launched in the US, where Tether does not operate. However, when asked if PYUSD would be launched in international markets, Ardoino said that it would generally be positive for the crypto industry.
“This is very interesting. The introduction of another stablecoin in the US could lead to a decrease in revenues primarily for payments that feed Mastercard and Visa. It will also contribute to the further growth of the sector and push for sensible regulations.”
So, how will USDC be affected? According to David Wells, the CEO of Enclave Markets and former product leader for Paxos and Binance USD (BUSD), the impact on USDC is still uncertain.
Wells stated that PYUSD and USDC would compete for similar customer segments who prefer a regulated stablecoin based in the US, rather than the offshore stablecoin segment. However, for PYUSD to compete directly with USDC, it would need to be listed on crypto exchanges.
“It is uncertain when PYUSD will be listed on major exchanges, so it may focus on cross-platform payments for initial adoption. In the longer term, PYUSD will likely compete with USDC in the decentralized finance (DeFi) markets.”
Why is Tether in the Headlines?
Last week, during an AMA session, the CEO of Binance complained about the lack of reliable financial audit reports from the company. Tether has not published comprehensive financial audit reports, except for the ones approved by BDO.
In fact, we haven’t seen almost any company in this field, including cryptocurrency exchanges, doing this. Therefore, Binance is among those criticized in this regard.