Tether: The Potential CBDC?
Experts in the crypto industry are discussing the possibility of Tether becoming the de facto central bank digital currency (CBDC) of the world. Cantor Fitzgerald CEO Howard Lutnick expressed his support for Tether, stating that he holds their treasuries and is a big fan of the stablecoin.
Tether as a CBDC
According to Glassnode on-chain analyst “Checkmate,” Tether can be considered the CBDC. He pointed out that if the US government can shut down Russia’s reserves, they could potentially do the same to Tether. However, he believes that Tether is a better alternative for emerging markets whose fiat currencies are collapsing.
Tether’s Relationship with US Regulators
Former portfolio manager Travis Kling reminded his followers that Tether exists because the US government allows it. However, Tether has been distancing itself from Uncle Sam due to regulatory concerns in the crypto industry. Despite this, it has become the stablecoin of choice for many traders and is widely used for transactions.
Tether’s Market Dominance
Tether’s market cap has reached a record $90 billion, surpassing Circle’s market cap of around $24 billion. Tether now holds approximately 70% of the stablecoin market share, while Circle’s share has decreased to 18%.
Hot Take: Tether’s Potential as a CBDC
The discussion surrounding Tether’s potential as a CBDC highlights its growing influence and market dominance in the crypto industry. While there are concerns about its relationship with US regulators, Tether continues to gain popularity and trust among traders worldwide. Its role as a stablecoin alternative for collapsing fiat currencies in emerging markets further solidifies its position. As the crypto market evolves, Tether’s status as a potential CBDC remains an intriguing topic to watch.
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