The CEO of Tether, the company behind USDT has said the stablecoin will one day become obsolete in a shocking revelation.
Ardoino stated this during a podcast on 27 February, saying that a financial reset is in the pipeline that will make fiat currencies useless, including USDT.
He added that Bitcoin will then become the only option for anyone seeking to hedge against inflation and devaluation.
Why USDT will fail
Fiat currencies are designed for inflation, which means their value continues to decline with the passage of time.
This is the idea behind Ardoino’s prediction of fiat currencies failing. Also because USDT, like every other stablecoin derives its value from fiat currencies like the USD, it is likely to fail as well.
“I expect a financial reset, where all national currencies will collapse and experience hyperinflation. Consequently, USDT will be completely useless, and at that point, I believe the world will only use Bitcoin.”
Tether, the company headed by Ardoino is the creator and distributor of USDT, which remains the most popular stablecoin till date.
Stablecoins which are like “stable” versions of cryptocurrencies are not as volatile as conventional crypto assets like Bitcoin.
Because they have a relatively fixed value and are cheaper to transact with than fiat currencies, they have increased in popularity, especially in countries where the local currency is suffering much inflation, or where there are laws against crypto investing.
Not a surprise
Ardoino’s prediction of the death of USDT may sound shocking because he’s the head of Tether, but it isn’t surprising to those who have been watching.
The company has recently been diversifying its portfolio, initially by investing in Bitcoin mining farms and more recently in sports, with a minority stake in Italian Football club Juventus.
All this suggested a gradual shift of focus from the crypto industry and particularly Tether, almost like in preparation against the future.
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