Paolo Ardoino: USDT stablecoin will become useless in the long term

Tether CEO Predicts a Bitcoin-Only Future

Paolo Ardoino, CEO of Tether (USDT), has made a bold claim that USDT will become useless in the long term, as the world moves toward a Bitcoin-based financial system. Speaking on the Bitcoin Italia podcast, Ardoino predicted that a major financial crisis will trigger the collapse of national currencies, ultimately leading to hyperinflation and the adoption of Bitcoin as the global standard.

"A crisis is inevitable. In such a scenario, only Bitcoin will survive, and the USDT stablecoin will be a useless asset in the long term," Ardoino stated.

His vision aligns with the hyperbitcoinization thesis, which suggests that Bitcoin will gradually replace fiat currencies and centralized digital assets as the primary store of value and medium of exchange.

Ardoino emphasized that Tether's current role is to help developing countries transition to a Bitcoin-based economy by offering a stable, dollar-pegged digital asset that provides liquidity and financial access.

• USDT remains useful as long as fiat currencies exist and there is demand for stable-value transactions.
• However, once Bitcoin becomes the dominant global asset, USDT will lose its relevance.
• Developing countries that currently rely on Tether for remittances and commerce will eventually switch to Bitcoin directly.

"Bitcoin will survive any financial catastrophe and will still be in demand even in 2000 years," Ardoino predicted.

While Tether remains the largest stablecoin in the world, Ardoino acknowledged that politicians and competitors are trying to push USDT out of the market.

• Regulatory scrutiny: Governments worldwide are tightening regulations on stablecoins, particularly around reserves and transparency.
• CBDC competition: Central Bank Digital Currencies (CBDCs) could reduce demand for private stablecoins like USDT.
• Decentralized alternatives: Algorithmic and Bitcoin-backed stablecoins may become preferred over centralized options.

Despite these challenges, Tether continues to dominate the stablecoin market, with a market cap exceeding $90 billion and widespread use in crypto trading and cross-border payments.

If Ardoino's vision materializes, the global financial system could transition through three key phases:

1. Fiat-Based System (Current State)
   • Governments control monetary policy.
   • Stablecoins like USDT serve as a bridge between crypto and traditional finance.
2. Hybrid Transition (Near Future)
   • Bitcoin adoption increases as inflation erodes fiat currencies.
   • Stablecoins remain relevant but lose dominance as Bitcoin becomes the preferred reserve asset.
3. Bitcoin-Only Economy (Long Term)
   • Fiat collapses or becomes irrelevant.
   • Bitcoin serves as the global unit of account and store of value.

Ardoino's comments highlight a radical shift in financial thinking, where stablecoins like USDT are no longer necessary in a Bitcoin-dominated world. While this scenario may take decades to materialize, his prediction suggests that Tether's long-term vision aligns with Bitcoin maximalism rather than stablecoin dependency.

For now, USDT remains an essential part of the crypto ecosystem, but if Bitcoin continues gaining global adoption, its role as a bridge currency may eventually become obsolete.