Paolo Ardoino, chief technology officer (CTO) of Tether, the world's largest stablecoin by market capitalization, shared his views on the potential US default and its impact on the cryptocurrency market.
Ardoino said he does not think the US will default on its debt obligations, as this would be disastrous for the US economy and the global financial system.
“I think there is a possibility that the US will default, which I don't think will happen, that would be a disaster for the US economy.”
Ardoino also explained how the uncertainty about the US debt limit and the FED's monetary policy affects the demand for stablecoins, especially Tether:
“Overall, despite the market cap of Tether rising, you see the entire stablecoin market overall falling 23% from its all-time high because ultimately people prefer to sit on their dollars and earn interest, which means less room to reinvest that liquidity into the crypto markets, more It leaves little liquidity.”
He added that if US inflation figures fall and the Fed stops raising interest rates, not just the crypto market, but the markets in general will start to improve.
Ardoino is a well-known full-stack software developer with deep experience in the financial industry and cryptography. He discovered Bitcoin in 2012 and joined Bitfinex two years later. He is currently the CTO of both Bitfinex and Tether.
*Not investment advice.