Crypto enterprise experts were engaged in a spirited discussion about Tether and its potential to become the dollar-pegged de facto central bank digital currency of the world.
The comments come following remarks from Cantor Fitzgerald CEO Howard Lutnick, who expressed his support for Tether on CNBC earlier this week:
“I’m a big fan of this stablecoin called Tether…I back their treasuries. So I back their treasuries, and they have a variety of treasuries. They’re over $90 billion now, so I’m a big fan of Tether.”
Cantor Fitzgerald is a global investment bank, brokerage, and financial services company.
Is Tether a CBDC?
On Dec. 13, Glassnode on-chain analyst “Checkɱate” declared, “Tether is the CBDC.”
He added that if the US government can shut down Russia’s reserves, it is “difficult to argue they are incapable of closing down Tether’s.”
“Most probable fact is the USG heavenly chanced on an unlimited account for treasuries, exactly after they desire a bailout from an unsustainable fiscal difficulty.
He believes the growing world is “dollarizing” as their fiat currencies give way. Therefore, USDT is objectively better than pesos, bolivars, and lira. “Emerging markets in point of truth fund US retirements, healthcare, military escapades, and gov largess,” he added before concluding:
“Ironically, this is a win-win scenario for both parties.”
Tether is the CBDC.
Travis is dead on, if the USG can shut down Russia’s reserves…difficult to argue they are incapable of closing down tether’s.
Most probable fact is the USG heavenly chanced on an unlimited account for treasuries, exactly after they desire a bail out from an unsustainable… https://t.co/0i903ARV9x
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) December 13, 2023
Bitcoin ESG evangelist David Batten identified several key differences between Tether and a CBDC.
He noted that CBDCs don’t invest millions into green BTC mining, collect Bitcoin into College training programs, or partner with a Bitcoin city (Lugano).
The comments come in line with former portfolio manager Travis Kling who reminded his followers that “Tether is in business because the US government is okay with that.”
“Tether is completely beholden to US regulators. If the US government ever changes its mind for some reason, Tether would be gone the next day.”
Furthermore, there was a considerable opposition in the US to a Federal Reserve-managed CBDC.
Tether Distancing From Uncle Sam
However, the company has been distancing itself from Uncle Sam due to ongoing crackdown on crypto. Moreover, it is now the stablecoin of choice for the rest of the world.
Last week, General Partner at Dragonfly, Rob Hadick, commented on the divergence between USDT and USDC supplies and trading volumes.
“Traders outside of the regulated US/UK companies and increasingly retail in emerging markets are using USDT as a mechanism to transact.”
Tether’s market cap has surged to a record $90 billion,
