Tether CEO Predicts 150% User Growth Amid Industry Challenges

Paolo Ardoino, the CEO of Tether, has declared that the stablecoin industry is entering a new phase characterized by a surge in stablecoin solutions from both private enterprises and governmental bodies. In a recent post, Ardoino highlighted that the crypto industry is now in the "stablecoin multiverse" era, where numerous stablecoins are being launched to meet the increasing global demand.

However, not everyone shares Ardoino's optimistic view. Slava Demchuk, the CEO of crypto compliance firm AMLBot, disagrees with the notion that there are hundreds of stablecoins launched by companies and governments. Demchuk argues that launching a stablecoin is a complex and resource-intensive process, especially with stringent regulations like the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework. MiCA imposes rigorous requirements, including capital reserves, liquidity buffers, and robust governance structures, which not all companies can easily meet.

Demchuk also pointed out that the growth in the number of stablecoins presents challenges and risks. The regulatory differences across jurisdictions are a significant issue, with MiCA providing clarity in the EU while the US market is still in debate. This inconsistency could push companies to less regulated markets, potentially undermining consumer protection efforts.

Ardoino, on the other hand, expects rapid growth for Tether. He claimed that Tether currently has 400 million users worldwide and anticipates that number to reach one billion soon. Ardoino attributes this expected growth to Tether's approach, which focuses on grassroots adoption rather than the traditional finance model. He believes that Tether's strategy of working from the ground up will drive its expansion.

Vasily Vidmanov, the chief operating officer of decentralized finance compliance protocol PureFi, finds Ardoino’s forecast interesting but not entirely realistic. Vidmanov cited the recent delisting of USDT in the European Economic Area as evidence that resisting regulation is futile. He noted that data concerning swaps between USDT and Circle’s competing USDC indicates a noticeable increase following the delisting, raising concerns over Tether’s reputation and ongoing investigations in the US related to sanctions compliance and Anti-Money Laundering.

Ardoino had previously dismissed claims of Tether's involvement in criminal activities as "old noise." However, Vidmanov believes that achieving the projected figures within the next one to two years seems unlikely unless there are significant shifts in global policy and a substantial influx of new users from underpenetrated crypto markets.