With many investors looking into stablecoins it is expected that we will see an increased competition among these different stablecoins out there in the market.
USDT issued by Tether, which is the largest stablecoin out there, has announced that they are going to launch a new stablecoin that will be pegged to the British Pound Sterling.
This pound-pegged stablecoin is called GBPT and will be initially live on Ethereum blockchain, as per Tether's announcement.
Is it a smart move? It does look a smart move as the UK government has announced back in April this year that it has plans of making UK a hub of global cryptoasset technology. They have plans of giving stablecoins some recognition in terms of making it as a valid form of payment.
In April of this year, The UK Treasury announced plans to make the country a global crypto hub. According to its website, the government will also make moves to see stablecoins recognized as a valid form of payment. Source
In response to this development, Tether's Chief Technology Officer, Paolo Ardonio, said that are hoping to help UK in becoming a crypto technology hub as per the government's recent plans.
This move could be big for the millions of stablecoin investors out there in the market. With the umbrella of UK government, they could prosper impacting the rest of the countries as well to have a look at Stablecoins.
Irrespective of the fact that USDT may be a competitor to the rest of the Stablecoins out there in the market but we should not forget that supporting Tether in this move is more likely is going to open ways for the rest of the crypto market if UK government goes on to recognize USDT as a valid form of payment.
Smart move.
What you guys think about this development?