After PayPal pressed the button for the stablecoin, Tether’s CEO made statements on the subject.
Tether CTO Paolo Ardoino stated that payments giant PayPal’s stablecoin launch did not affect Tether. In a statement to The Block, Ardoino explained that the launch of the PayPal stablecoin (PYUSD) in the US, where Tether is not serving, has no impact.
Tether CEO Paolo Ardoino talks about PayPal’s stablecoin
Tether CEO Paolo Ardoino stated that one way the PYUSD launch has helped Tether is that it can affect Tether’s competition. Citing for competitor Circle’s USDC stablecoin, “This could mean a further downgrade of our US-focused competition. Tether, on the other hand, is focused on emerging markets and countries.”
According to Enclave Markets CEO David Wells, who offers a different perspective on PayPal’s stablecoin launch and its impact on USDC, PYUSD will not immediately impact Circle’s USDC. He stated that USDC and PYUSD will compete for similar customer segments, but PYUSD needs to take more steps to fully compete with USDC. He noted that there should be a focus on cross-platform payment usage, especially since it is unclear whether PYUSD will be listed on major crypto exchanges. He suggested that in the long term, PYUSD could compete with USDC in the DeFi markets and crypto trading market.
Anders Helseth, vice president of crypto research firm K33, also supported Wells’ view. An important factor in the short term, according to Helseth, is whether exchanges are adopting PayPal’s stablecoin.
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