USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.
USDC issuer Circle to launch new layer-1 Arc blockchain this year
https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc
Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/
This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars
USDC issuer Circle to launch new layer-1 Arc blockchain this year
https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc
Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/
This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars
Let them have their own centralized chains then. I'm sure nobody will use them (except banks, governments, and companies). Tether and Circle just want greater control/manipulation over their stablecoins. And what better way than just creating their own blockchain network from scratch? I'm afraid that if these companies decide to move forward with the idea, their stablecoins will no longer be functional on other chains. Both Tether and Circle will "freeze" stablecoins on rival networks, forcing everyone to move to their centralized chains instead. Perhaps, this would be a huge win for decentralized stablecoins such as DAI and USDD? One can only hope.
The only downside would be that decentralized stablecoins can easily lose their peg anytime. Most of them are algorithmic, while others are collaterized against crypto. The market will ultimately decide which stablecoins stay afloat, and which will fade into oblivion. Just my two sats.
