Tether CTO Paolo Ardoino criticized Ripple CEO Brad Garlinghouse for supposedly spreading fear about USDT. In a recent interview, Garlinghouse highlighted the negative implications of the US government’s recent scrutiny of USDT.
In response, Ardoino indirectly called Garlinghouse an uninformed CEO who is spreading FUD about USDT to promote his soon-to-be-launched rival stablecoin.
US Government’s Target On USDT Will Disrupt the Crypto Ecosystem, Garlinghouse Says
In a May 10 episode of the World Class podcast with Chris Vasquez, Ripple CEO Garlinghouse voiced his concerns regarding the US authorities’ recent scrutiny of Tether USDT.
Given Tether’s position in the industry, Garlinghouse noted that such a development could significantly impact the entire cryptocurrency ecosystem.
Ripple CEO Brad Garlinghouse: The US Government is going after Tether (USDT issuer). That is clear to me. I view Tether as a very important part of the ecosystem and I don’t know how to predict the impact it would have on the rest of the ecosystem. https://t.co/fJ6RME6TN1
— Wu Blockchain (@WuBlockchain) May 13, 2024
Further, the Ripple CEO discussed other events within the crypto industry, including the arrest and sentencing of Binance founder Changpeng Zhao. Also, Garlinghouse noted the threat to the primary crypto asset, Bitcoin, from a technological evaluation.
Tether is the issuer and manager of USDT, the world’s largest stablecoin, which has a market cap of over $110 billion.
Garlinghouse’s comment comes after several reports questioning the transparency and illicit use of USDT surfaced. According to a Bloomberg report, USDT stands as the most-used stablecoin for illegal activities. It noted that in 2023, more than 1.6% of Tether’s total volume was connected with criminal activities.
Further, the US government discovered that terrorist groups and users in some US-sanctioned countries use USDT. In April, the US Treasury Deputy Secretary, Adewale Adeyemo, testified before the Senate Banking Committee how Russia use USDT to circumvent US sanctions.
Also, a recent Deutsche Bank report questioned Tether’s operation’s stability and transparency. The report recounted the $41 million fine imposed on Tether by the Commodity Futures Trading Commission (CFTC) for misrepresentating its reserve holdings.
Tether CTO Ardoino’s Response
The CTO of Tether Ardoino slammed the Ripple CEO for inciting fear about USDT. Without directly mentioning Garlinghouse, the CTO referred to Garlinghouse’s assertions about US scrutiny on Tether.
Tether’s CTO expressed doubts over the integrity of the comments from the unnamed CEO, seeing that his company is under SEC investigation. He indicated that the CEO is only trying to build his benefits by treading down USDT.
Ardoino stated,
“An uninformed CEO leading a company being investigated by the SEC and launching a competitive stablecoin (cui prodest) is being reported spreading fear about USDT.”
An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.
Let me give you an update on Tether USDt ecosystem safety.
USDt is the most used stablecoin in the world, with…
— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024
Further, Ardoino laid out USDT’s robust stance as the most used stablecoin worldwide. He pointed out that USDT has accumulated hundreds of millions of people in its user base. He also emphasized USDT’s price stability, liquidity reserve holdings, and trusted custodians.
In early April, Ripple announced its plans to launch a stablecoin, pegged to the US dollar at 1:1. According to the blockchain payment firm, its coming stablecoin will run on both the XRP Ledger and Ethereum.
3/ Ripple’s stablecoin will be 100% backed by US dollar deposits, U.S. government bonds, and cash equivalents and Ripple pledges transparency with monthly third-party attestations, ensuring trust and reliability.
— Ripple (@Ripple) April 4, 2024
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