Paolo Ardoino, CEO of Tether (USDT), the world's largest stablecoin company, published a statement regarding the use of USDT, which has been the subject of criticism from time to time, mostly in the Tron (TRX) network.
Ardoino attributes the majority of people using the Tron network to send USDT to its low transaction fees
Ardoino used the phrase “Blockchain Y” in his statement to avoid naming the Tron network and to point out that it could be any network.
While the rest of the cryptocurrency industry has spent eight years implementing its plan to add a meaningful scalability layer on top of another blockchain it calls “Blockchain Z” and is prioritizing DeFi and memecoins, Ardoino has predicted that Blockchain Y will be a gas fee in emerging markets and developing countries. He argued that it emerged as the only cheap and fast payment transport layer for people who could not afford to pay $5 for mobile phones.
As a result, tens of thousands of Payment Service Providers (PSPs) have expended significant resources to integrate Blockchain Y, according to the executive. This first mover advantage is now ingrained in many businesses.
Ardoino also pointed out that although there are many competing Layer 2 solutions on top of Blockchain Z today, it can be confusing for a payments company to decide which one to use. He emphasized that it's great to have multiple options, but timing and focus are key.
In addition, Ardoino also stated that Tether does not favor one blockchain over another. According to Ardoino, Tether supports different blockchains as they are transport layers for USDt and its other tokens. Users decide which is best for them based on support, speed and cost.
*This is not investment advice.
