Tether CEO Paolo Ardoino stresses the importance of healthy competition among stablecoin providers to bolster regulatory acceptance.

In an exclusive interview with Cointelegraph during Paris Blockchain Week, Ardoino highlights the need for diversified players in the stablecoin sector to enhance the credibility of fiat-backed tokens in regulatory frameworks.

"Competition is essential. Tether cannot thrive alone in the stablecoin ecosystem, which flourishes with numerous participants," Ardoino emphasizes.

Stablecoins, with a combined market capitalization exceeding $130 billion in April 2024, play vital roles across centralized exchanges and decentralized finance (DeFi) platforms.

Ardoino underscores the significance of having multiple reputable stablecoin providers with thriving businesses, asserting that such diversity strengthens discussions with regulators.

Ripple's announcement to introduce its stablecoin later in 2024 aligns with Ardoino's perspective on the industry's potential for expansion.

"There's ample space for new entrants," Ardoino observes. "Considering the ongoing massive money printing in the United States, the stablecoin sector could grow significantly."

Tether's USDT remains the dominant stablecoin, boasting a market capitalization of $108 billion, followed by USD Coin (USDC) at $32 billion.

Ardoino attributes the rising adoption of stablecoins to escalating inflation and currency devaluation in various nations, particularly those like Argentina, Turkey, and Venezuela.

With over 2 billion people worldwide lacking access to traditional banking services, Ardoino notes the growing reliance on digital wallets and stablecoins for financial transactions.

"The straightforward nature of stablecoins, like USDT, reflects the harsh economic realities many face globally," Ardoino remarks.

He maintains that USDT is overcollateralized by 106%, with plans to transition to 100% reserves in U.S. Treasury bills, currently holding an estimated $90 billion in Treasury bonds.