According to CryptoPotato, Tether, a stablecoin, has been discussed by crypto industry experts as having the potential to become the world's dollar-pegged central bank digital currency (CBDC). The discussions were prompted by Cantor Fitzgerald CEO Howard Lutnick's comments on CNBC, where he expressed his support for Tether and revealed that the company holds over $90 billion in treasuries. Cantor Fitzgerald is a global investment bank, brokerage, and financial services firm.
On Dec. 13, Glassnode on-chain analyst “Checkɱate” declared that Tether is the CBDC and suggested that the US government could shut down Tether if it wanted to. He also noted that the developing world is dollarizing as their fiat currencies collapse, making USDT a better option than pesos, bolivars, and lira. However, Bitcoin ESG evangelist David Batten pointed out key differences between Tether and a CBDC, such as Tether's investments in green BTC mining and partnerships with Bitcoin cities like Lugano.
Despite opposition to a Federal Reserve-controlled CBDC in the US, Tether has been distancing itself from the US government due to the ongoing war on crypto. It has become the stablecoin of choice for the rest of the world, with its market cap surging to a record $90 billion and commanding around 70% of the stablecoin market share. In contrast, Circle's market cap has slumped to around $24 billion, with its share declining to just 18%.
