In a recent clash between two industry titans, Tether and Ripple, the CEOs of both companies engaged in a heated exchange. Paolo Ardoino, the CEO of Tether, came to the defense of his company’s native stablecoin, USDT, after Brad Garlinghouse, the CEO of Ripple, expressed concerns about the cryptocurrency.
On May 13, Paolo Ardoino responded to critical remarks made by Brad Garlinghouse, who had recently stated that the United States government was targeting Tether. Garlinghouse emphasized that while he considered USDT to be a significant player in the industry, he had doubts about its future impact due to the alleged investigation.
In response to the criticism, Ardoino referred to Garlinghouse as an “uninformed CEO,” pointing out that his company was currently under investigation by the Securities and Exchange Commission (SEC) of the USA. The Tether CEO accused Garlinghouse of spreading fear, uncertainty, and doubt (FUD) about USDT, which is the largest stablecoin in the market. He suggested that Garlinghouse’s motives were influenced by the fact that Ripple is developing its own stablecoin, set to launch soon. Ardoino then provided details about the security of the Tether (USDT) ecosystem.
Ardoino’s tweet read as follows: “Let me give you an update on the security of the Tether USDt ecosystem. USDt is the most used stablecoin in the world, with hundreds of millions of users mainly in emerging markets and developing countries. Entire communities in these regions do not have bank accounts, are left behind by the traditional banking system because they are too poor to have interest and use USDt daily as a checking and savings account.”
Brad Garlinghouse, the CEO of Ripple, recently expressed concerns about what he perceived as the targeting of Tether by the United States government. During a podcast episode on May 10, Garlinghouse speculated on the potential implications of regulatory actions against Tether, foreseeing potential unpredictable events in the future of the cryptocurrency market.
“It is clear to me that the US government is going after Tether,” Garlinghouse stated, underscoring the stablecoin’s significance in the crypto ecosystem. This discussion becomes even more relevant when considering Ripple’s plans to launch its own stablecoin in 2024, which could potentially shift the balance of power in the digital financial market. Tether Holdings, the parent company of Tether, has already faced multiple allegations and investigations.
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