Tetherย (USDT) CTO Paolo Ardoino stated the possibilityย of a potential Unitedย States default is low as it would have โcatastrophicโ consequences for the Unitedย States economy.
โI think this thing with theย capacity Unitedย States default that, by the way, I doย not think will happen โ I mean, it would be catastrophic for the Unitedย States economy,โ Ardoino stated, on The Scoop podcast. โI think everyone is sitting tight to monitor whatโs going on and what will happen.โ
Ardoino discussed what events mayย be a catalyst to shake things up in the market, where liquidity has dried up. He pointedย outย that while Bitcoinย (BTC) has rebounded from below $20,000 to around $27,000, thereโs a bit less space for more volatile assets moreย traditionally because interest prices are ramping up. He alsoย mentionedย that people are leaning toward having a 5 percent yield thatโs more certain.
โSo you can see that overall, evenย though Tetherย (USDT) grew in marketย capitalization, you see the entire cryptoย stablecoin market as a sum it went down I think 23 percent from the all-time highs because ultimately people prefer to sit on their dollars and earn interest on it, and so that likewise leaves less space, less liquidity to essentially reinvest that liquidity in the cryptocurrency markets,โ he said.
Onย theย otherย hand, he put forward one possible optimistic path forward. โAnd so itโs kind of multi-factor, but definitely if we are starting to see the Unitedย States inflation numbers going down, if the Fed will stop ramping up the interest prices, I believe that we will be in a situation where the markets will start healing, not just the cryptocurrency market, the market in general,โ he said.
