- He said so on The Scoop podcast
- Ardoino thinks the parties in Congress will still reach an agreement
- Since the consequences would be catastrophic if not
CTO of Tether Paolo Ardoino thinks a scenario in which the US declares a technical default is unlikely.
The consequences of such a decision would be catastrophic, and Congress is fully aware of that.
He said this on The Block’s “The Scoop” podcast. Listen to the full recording of the conversation at the link.
The central theme of the podcast was the risk of default in the U.S. Tether is the issuer of the USDT stabelcoin, pegged to USD and partially backed by fiat.
Naturally, such an economic “shake-up” would significantly affect both the company and the token.
But Ardoino believes such a scenario is unlikely:
“I do not believe that it will come (technical default).. This has dire consequences for the U.S. economy.”
As for the market as a whole, Ardoino says there is much less room for high-risk investments.
Tether’s CTO attributes this primarily to the policy of the Fed, which is in no hurry to lower the interest rate:
“Right now, Americans would rather just earn interest on their capital.
This significantly reduces the amount of funds for re-investment in the cryptocurrency segment.”
Ardoino believes that the main indicator for the speedy recovery of the market is a decrease in the rate of inflation.
And only after that can we talk about increasing investment. What do we know about the state debt situation at the moment?
As of now, negotiations in Congress are at a standstill. Biden rejected the deal with Republicans on the grounds that he did not want to help “tax cheats” and “rich crypto investors.”
But most interestingly, some experts believe that raising the US government debt limit will hit the bitcoin exchange rate.
Read more about this whole situation, as well as the potential consequences for BTC at the link.