Speaking on the Bitcoin Italia Podcast, during the episode “Forrest or Anakin?”, the CEO of Tether stated: “In the long term, USDT will be useless: the world will only use Bitcoin after the collapse of fiat currencies.”
“In the long term, I don’t believe there is a future for USDT; 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.”
This is how Paolo Ardoino, CEO of Tether, expressed himself during an interview with the Bitcoin Italia Podcast during the episode “Forrest or Anakin?”
Interviewed by co-hosts Rikki and Guybrush, the CEO of Tether shared personal as well as business considerations, commenting on the integration of USDT on LN, the relationship between Tether and the US government, the coexistence between USDT and Bitcoin, and the role of VCs in the sector.
Analyzing the relationship between Tether and Bitcoin, he stated:
“I believe a product [USDT] should exist as long as there is a need. Bitcoin will succeed regardless of me, Bitfinex, or Tether. It’s the only currency capable of withstanding a catastrophe from now until the next 2,000 years.”
When pressed about the dilemma of being a bitcoiner who manages a company that supports the US dollar, Ardoino explained this choice by highlighting how USDT responds to an immediate need in emerging markets, where many people still need access to the US dollar. At the same time, he specified that for years Tether has been investing part of its profits in education, companies, and startups to grow the Bitcoin infrastructure.
According to Ardoino, Bitcoin will emerge as the only valid alternative to fiat currencies, while USDT will serve as a temporary “bridge” toward this transition.
Criticizing the approach of Venture Capital in the crypto sector, the CEO of Tether stated:
“If Tether wasn’t there for support, how many other companies would invest in the Bitcoin ecosystem? Most VCs prefer to invest in altcoins for the prospect of quick gains. In the Bitcoin-only world, the only way to be profitable is through hard work.”
Commenting on the announcement of USDT integration on the Lightning Network via Taproot Assets, Ardoino specified that, despite Tether having invested in and being involved in the development of RGB, the two technologies are not mutually exclusive. He emphasized how both solutions can coexist and develop in parallel, leaving the community to choose the technology best suited to their needs.
Explaining the reasons for choosing LN, Ardoino stated that the main advantages of moving USDT to Bitcoin’s second layer are two:
- minimal fees compared to other networks like Ethereum and Tron;
- better privacy, not using a blockchain.
“From a technological point of view, LN is the only sensible way to make a layer 2 and achieve scalability,” emphasized Tether’s number one, while acknowledging the challenges related to the centralization of liquidity and routing.
The CEO also outlined the roadmap for implementation, specifying that it will take months of work to see the first results. From audits to wallet development, the team is working on creating a robust and reliable infrastructure. A relevant aspect will concern improving the user experience, particularly regarding the management of Lightning Network nodes on mobile devices, which currently requires significant resources and makes wallets heavier in terms of size.
To those who suggest that USDT could effectively become the American CBDC, Ardoino responded:
“If we didn’t submit to the controls and rules that banks are subject to, we couldn’t operate with USDT and we couldn’t help 400 million people. Today, about 35 million new wallets are created each quarter to use USDT. As Tether, we are offering a possibility that is part of the traditional financial system.”
During the interview, Ardoino reflected on Tether’s impact in the current financial landscape: he expressed the belief that, in a hypothetical scenario without Tether, the US dollar would still maintain its dominant position, while the Bitcoin startup ecosystem would be in a more backward state of development compared to the current one. Furthermore, in the absence of Tether, another market player would probably have filled that void.
He didn’t spare criticism for Europe either, commenting on the potential introduction of a digital euro:
“The digital euro would eliminate an important intermediary such as commercial banks. If the ECB had full access to all citizen transactions with complete KYC, we would find ourselves in a dystopian world.”
He finally emphasized the importance of commercial banks as “friction” between citizens and the State, declaring:
“Citizens must always be able to exercise the right not to trust the State; only in this way will the State have an incentive to remain as honest as possible toward citizens.”
