Tether CTO on USDC depeg: “Bitcoin maxis was right all along”

At Paris Blockchain Week 2023, Tether’s Chief Technology Officer Paolo Ardoino spoke with Cointelegraph reporter Joseph Hall to discuss topics such as the USD coin (USDC) breaking its dollar peg and how it highlights the importance of Bitcoin (BTC) and decentralization.

According to Ardoino, stablecoin issuers should always ensure that their reserves remain protected. The Tether leader believes that a stable coin issuer works to protect reserves and funds with all its capabilities. Arduino explained that:

“I think the competitor’s mistake was to leave $3 billion or more that was uninsured sitting in the bank. […] And I was surprised to see this lack of understanding of risk management from major competitors in the industry.”

In addition, the Tether CEO explained that they have believed that overexposure in a single jurisdiction, which in this case would be the United States, could cause major problems. Finally, this is what happened said Ardoino. He added:

“For us, it is extremely important to rely on a diverse set of jurisdictions. In decentralization, in distribution, there is more security.”

When asked what they thought about the USDC potentially going to zero, Ardoino pointed out that their firm was not hoping for this to happen. He said that if Tether (USDT) remained as the only stable coin in the market, the industry would not be an industry. “If you’re alone in the industry, it’s not really an industry,” he said.

Related: Rattling crypto industry may emerge stronger after USDC depeg

Aside from the USDC event, the duo also discussed other issues such as the dollar being a store of value and Bitcoin payment adoption in Lugano, Switzerland. When asked if the US dollar could still be considered a store of value, Ardoino said this could be the case in some countries. However, Tether CTO expressed that when it comes to storing wealth, Bitcoin is still the best. He explained that:

“I think that Bitcoin is really the ultimate way to hold your own wealth and is the safest way. And I think that if anything, what’s happening in this these months is just, you know, demonstrating that bitcoiners and Bitcoin maxis was right all along.”

Finally, the Tether CEO also talked about the firm’s collaboration with American clothing brand Guess to bring Bitcoin and Tether payments to stores in Lugano. Plan B, which is a collaborative project between Tether and the city of Lugano, partnered with Guess to accept Bitcoin and Tether in local stores.