Tether CEO defends Tron network as a low-cost alternative for stablecoin transactions
Paolo Ardoino, the CEO of Tether (USDT), the world’s largest stablecoin company, has published a statement regarding the use of USDT, which has been the subject of criticism from time to time, mostly in the Tron (TRX) network.
Ardoino attributes the majority of people using the Tron network to send USDT to its low transaction fees, which make it suitable for small and frequent payments. He used the phrase “Blockchain Y” in his statement to avoid naming the Tron network and to point out that it could be any network that offers similar advantages.
He contrasted this with another blockchain, which he called “Blockchain Z”, which he said has spent eight years implementing its plan to add a meaningful scalability layer and is prioritizing DeFi and memecoins. He claimed that Blockchain Y has emerged as the only cheap and fast payment transport layer for people who could not afford to pay $5 for mobile phones, especially in emerging markets and developing countries. He said that tens of thousands of Payment Service Providers (PSPs) have expended significant resources to integrate Blockchain Y, and that this first mover advantage is now ingrained in many businesses.
He also acknowledged that there are many competing Layer 2 solutions on top of Blockchain Z today, but he argued that it can be confusing for a payments company to decide which one to use. He emphasized that it’s great to have multiple options, but timing and focus are key.
In addition, Ardoino also stated that Tether does not favor one blockchain over another. He said that Tether supports different blockchains as they are transport layers for USDt and its other tokens. He said that users decide which is best for them based on support, speed and cost.
He concluded his statement by saying that Tether is committed to providing the best service to its users and partners, and that it will continue to explore new opportunities and innovations in the crypto space.
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