The Best Opportunity for Stablecoin Issuance on Bitcoin
In an interview with The Block, Paolo Ardoino, the chief technology officer at crypto exchange Bitfinex, expressed his belief that the RGB protocol offers the “best opportunity” for issuing stablecoins on Bitcoin. Ardoino sees RGB as the rightful successor to Omni, which Tether discontinued using to issue its USDT stablecoin.
Ardoino stated that RGB provides a modern and scalable smart contract system that allows for tokens on Bitcoin. He also mentioned that prominent figures in the Bitcoin community are supportive of RGB and believe it has all the necessary components to replace Omni successfully.
Introduction to RGB
RGB is a smart contracts system and off-chain protocol designed for Bitcoin and the Lightning Network. It enables the creation and issuance of Bitcoin-based digital assets. The concept of RGB was first introduced by Bitcoin educator Giacomo Zucco in 2016, incorporating earlier ideas from Bitcoin Core developer Peter Todd.
Discontinuation of Omni Support
Omn was initially used by Tether, Bitfinex’s sister company, in 2014 to issue stablecoins on the Bitcoin blockchain.
However, Tether announced this year that it would discontinue support for Omni in August. The decision was driven by decreased usage compared to increasing demand on Ethereum and Tron, which now dominate USDT supply.
Tether has completely ceased minting USDT on Omni but allows users to redeem existing tokens or swap them to other chains for several more months.
Ardoino acknowledged that Omni had suffered from a lack of support recently, hindering its sustainable development.
Tether is currently evaluating a timeline for potentially issuing USDT over RGB. The company is actively involved in the development of RGB and has expressed its intention to resume issuing the stablecoin on Bitcoin using this protocol.
Alternative Solution: Taproot Assets
Lightning Labs, a developer in the crypto space, has also introduced a similar solution called Taproot Assets. Initially available on Bitcoin, it is expected to gain Lightning Network support in the future.
Hot Take: RGB Emerges as the Leading Choice for Stablecoin Issuance on Bitcoin
With Tether discontinuing its use of Omni for issuing stablecoins on Bitcoin, the search for an alternative protocol has intensified. According to Paolo Ardoino, Bitfinex’s CTO, and Tether’s CEO, RGB represents the best opportunity for this purpose. With its modern and scalable smart contract system, RGB aligns with the needs of the Bitcoin community and has gained significant support. As Tether evaluates the possibility of issuing USDT over RGB, this protocol is poised to become the rightful successor to Omni in the realm of stablecoin issuance on Bitcoin.
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