As the world’s largest stablecoin, Tether [USDT] is so close to hitting a market cap of $10 billion, the founder of NEO suggested the possibility of stablecoin dethroning the United States Dollar.
US Could Scrutinize USDT By 2022
Cryptocurrencies have come a long way from being labeled as an instrument of illegal activities to widely being adopted by countries. Social media giant, Facebook’s entry into the crypto market with Libra churned fear among authorities. Considering the enormous user base of Facebook, several speculated that Libra could even dethrone the United States Dollar [USD]. However, the founder of NEO, a crypto platform, was seen inclining towards another crypto asset that could possibly give the dollar a release from its monopolistic stature.
Da Hongfei published a Medium post titled, “USDT: Challenging the USD’s Hegemony, Championing CBDC, and Beyond.” As per the post, Hongfei pointed out that the largest stablecoin, Tether [USDT] has the potential of challenging the “hegemony” of the current market that has been dominated by the USD. While several feared the volatile nature of cryptocurrencies, stablecoin came as a relief to them.
Despite its popularity, regulators have been keeping an eye on the stablecoin. Hongfei further alleged that USDT gained immense traction after the coin was widely used for payments, settlements, foreign exchange, cross-border remittance as well as payroll, this further led to financial institutions and regulators scrutinizing the stablecoin.
Furthermore, the founder of NEO believes that the USDT functions more efficiently as well as flexibly than the dollar. Most importantly, the operations of the stablecoin do not come under the purview of the centralized banking system of the United States. He added,
“As USDT penetration increases, authorities are increasingly viewing USDT as a threat to USD hegemony.”
Additionally, Hongfei suggested that as the stablecoin continues to record an upward trajectory, the United States is most likely to scrutinize the stablecoin by 2022.
Tether’s Market Cap To Soon Hit $10 Billion?
Tether recently surpassed XRP in terms of market capitalization and took over its position as the third-largest crypto asset in the world. Tether’s market cap, at the time of writing, was at $9.612 billion. This significant increase in the market cap has left several speculating the possibility of the stablecoin soon surpassing ETH, which is currently the second-largest coin in the ecosystem.