Bitfinex and Tether chief technology officer Paolo Ardoino, while speaking about crypto adoption in Europe, says stablecoins are the perfect Trojans for Bitcoin.
Ardoino was speaking at the historic Palais Brongniart during the recent Paris Blockchain Week Summit (PBWS).
Tether says it wants to cut down on its holdings of commercial debt in its reserves, as it continues to face serious questions regarding the backing of its digital currency.
Tether To Reduce Its Commercial Paper Holdings
Last year, Tether stirred up controversy after revealing that it has bought a large amount of commercial paper, a form of short-term corporate debt. Following the revelation, several people reacted since Tether didn’t disclose where the entries are based or which firm it holds the commercial papers from.
But Tether has kept on reducing the amount of commercial paper it has in its reserves. In Q4 2021, Tether said only 30% of its entire reserve is based on commercial paper. This represents a 44% reduction compared to the volume in the third quarter.
Ardoino recently stated that Tether is not done yet with the reduction as it plans to cut down on its commercial paper holding over time. Ardoino also revealed that Tether has transferred the funds from the commercial paper to U.S Treasury.
During the summit, Ardoino spoke on a wide range of topics including the likelihood of more countries accepting and adopting Bitcoin, the scalability issues of popular blockchain networks, and the adoption of Bitcoin and Tether de factor legal tenders in Lugano.
Tether To Enable More Adoption Of Its Stablecoins
Last month, the Swiss city of Lugano partnered with Tether to roll out a 3 million Swiss Franc initiative to encourage more use of digital assets and the adoption of blockchain technologies.
Additionally, the project will be creating an educational scholarship program within the three universities in Lugano. The project will utilize Tether (USDT) Bitcoin (BTC), and the citizen loyalty token, LVGA Points. They can be used by locals for activities like buying public goods and services, as well as the payment of taxes.
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Source: https://insidebitcoins.com/news/stablecoins-are-the-perfect-trojan-horse-for-bitcoin-says-tethers-paolo-ardoino