Ripple’s move to launch its own stablecoin could add further legitimacy to the stablecoin landscape, according to Tether CEO Paolo Ardoino, reports Cointelegraph.
Speaking to Cointelegraph during Paris Blockchain Week, Ardoino said the stablecoin ecosystem needs healthy competition between big players to further legitimize the utility of fiat-backed tokens in the eyes of regulators.
“First of all, competition is great. I always believed that Tether cannot be alone. The stablecoin ecosystem is an industry because there are many players,” Ardoino said.
Stablecoins have become an increasingly important cog in the wider cryptocurrency space. With a total market capitalization of over $130 billion in April 2024, stablecoins provide a wide range of utilities, from centralized exchange to decentralized finance (DeFi) protocols.
Ardoino said that having multiple credible players with viable and thriving businesses offering stablecoins reflects the growing importance of the sector:
“Being multiplayer helps in discussions with the regulators. If you are all alone and you have one single product, regulators will never take you seriously. If you have a group of great companies, then you are more effective.”
