n as the world's largest stablecoin, Tether [USDT] is so close to reaching a market capitalization of $ 10 billion, the founder of NEO suggested the possibility of stablecoin dethroning the US dollar.
U.S. could review USDT by 2022
Cryptocurrencies are far from having been labeled as an instrument of illegal activity to be widely adopted by countries. The social media giant, Facebook's entry into the crypto market with Libra has rekindled fear among the authorities. Given the huge Facebook user base, many have speculated that Libra could even dethrone the US dollar [USD]. However, the founder of NEO , a crypto platform, was seen inclined to another crypto asset that could eventually free the dollar from its monopoly stature.
Da Hongfei has posted a post titled " USDT : Challenging Hegemony, CBDC of the USD champion, and beyond. According to the article, Hongfei pointed out that the largest stablecoin, Tether [USDT] has the potential to challenge the "hegemony" of the current market which has been dominated by the USD. While many feared the volatile nature of cryptocurrencies, stablecoin gave them relief.
Despite its popularity, regulators have kept an eye on the stable currency. Hongfei further alleged that the USDT had gained immense traction after the coin was widely used for payments, settlements, currency, cross-border remittances as well as payroll, which led financial institutions and regulators to review stablecoin.
In addition, the founder of NEO believes that the USDT works more efficiently and flexibly than the dollar. Most importantly, stablecoin operations are not part of the centralized banking system in the United States. He added, Advertising
"As the penetration of the USD increases, authorities increasingly view the USD as a threat to the hegemony of the dollar."
In addition, Hongfei suggested that, while stablecoin continues to trend upward, the United States is most likely to examine stablecoin by 2022.
Will Tether's market capitalization soon reach $ 10 billion?
Tether recently surpassed XRP in terms of market capitalization and resumed its position as the third crypto asset in the world. Tether's market capitalization at the time of this writing was $ 9.612 billion. This significant increase in market capitalization has left many to speculate that stablecoin may soon overtake ETH , which is currently the second largest piece of the ecosystem.
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Looking at the current trends and USD denominated need in the world (especially emerging economies), USDT is a way to hedge your self against your own currency devaluation. This trend should increase imho.