tl;dr
Ripple CEO Brad Garlinghouse believes the US government, led by President Joe Biden, is targeting Tether, the largest stablecoin issuer. He expressed uncertainty about the potential impact of this crackdown on the crypto ecosystem. Ripple itself plans to introduce a stablecoin backed by the US dolla...
Ripple CEO Brad Garlinghouse predicts a US government crackdown on Tether, expressing uncertainty about its impact on the crypto ecosystem. He believes the US government is targeting Tether, the largest stablecoin issuer.
Garlinghouse also announced Ripple's plan to launch a stablecoin pegged to the US dollar, citing concerns raised by the American government about the use of USDT by sanctioned countries and terrorist organizations. The company predicts the stablecoin market value to reach $2.8 trillion by 2028, a substantial increase from the current $150 billion.
Garlinghouse stated that he cannot predict the impact of the crackdown on Tether and emphasized the significance of USDT and Tether in the crypto ecosystem. The US government's crackdown on the stablecoin raises concerns about its potential effects on the rest of the ecosystem.
Ripple's intention to introduce its own stablecoin comes amidst ongoing events in the digital asset sector, including Binance founder Changpeng Zhao's arrest and potential technological threats to Bitcoin. Additionally, the US government has uncovered information about the usage of USDT by terrorist organizations and users in sanctioned countries, leading to heightened scrutiny.
In April, Adewale Adeyemo, the US Treasury Deputy Secretary, testified before the Senate Banking Committee, highlighting Russia's utilization of USDT and alternative payment methods to evade US sanctions. Ripple's stablecoin, pegged 1:1 to the US dollar on the XRP Ledger, aims to address these concerns and capitalize on the projected growth of the stablecoin market.
Source: Based on information from Ripple CEO Brad Garlinghouse and recent developments in the cryptocurrency market.
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