The Blockstream CSO, who was speaking at CryptoNewspeople’s ongoing BlockShow conference on Nov. 15, noted that Tether’s first-mover advantage placed it in another league from the increasing number of other stablecoins on the market.
Mow: Tether won’t be big in retail
Mow made the comments during a panel dubbed “The progress of stablecoins — if any? Can I use it yet?” It featured representatives of several stablecoin companies, along with Chia Hock Lai, president of the Singapore FinTech Association.
“Tether is controversial because it’s the king of stablecoins,” he summarized, wearing a Tether T-shirt. “So it’s no surprise that everyone is trying to come at the king.”
Continuing, Mow noted but dismissed the public struggles USDT’s issuer is facing, including a United States lawsuit:
“Daily trading volume is $20 billion per day — 100 times larger than the next biggest stablecoin. So we see stupid things like theories about one whale manipulating Bitcoin price — billion-dollar lawsuits etc.”
Nonetheless, for all its success, Tether is unlikely to find a home among everyone consumers, as its utility lies elsewhere.
“I don’t think stablecoins will be adopted in retail use cases. They’re used mainly for traders to take advantage of arbitrage opportunities,” Mow added.
National digital currencies could kill off stablecoins
“Stablecoins are a mid-step toward hyperbitcoinization. They’re a temporary thing. The main threat they face is from the national cryptocurrencies. How open will those national cryptocurrencies be? …But stablecoins will then have no reason to exist with a national cryptocurrency,” he continued.
Mow added that Japanese yen, Canadian dollar and Australian dollar stablecoins are currently being developed to launch on the Liquid network in the near future.
As for Libra, he said, it is already too late:
“I think Libra is doomed.”