{"id":1533881,"date":"2025-05-03T11:35:00","date_gmt":"2025-05-03T15:35:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1533881"},"modified":"2025-05-03T11:35:00","modified_gmt":"2025-05-03T15:35:00","slug":"tether-ceo-paolo-ardoino-many-european-banks-will-blow-up-in-the-next-few-years","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/tether-ceo-paolo-ardoino-many-european-banks-will-blow-up-in-the-next-few-years\/1533881\/","title":{"rendered":"Tether CEO Paolo Ardoino: ‘Many’ European Banks Will ‘Blow Up’ In The Next Few Years"},"content":{"rendered":"

Tether CEO Paolo Ardoino: ‘Many’ European Banks Will ‘Blow Up’ In The Next Few Years<\/span><\/p>\n

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Tether CEO Paolo Ardoino has issued a dire warning to about Europe’s financial system, predicting that “many” of the continent’s banks are at risk of catastrophic collapse.<\/strong><\/p>\n

<\/a><\/p>\n

In an interview with the Less Noise More Signal podcast, Ardoino highlighted how stringent regulations and risky banking practices could precipitate a wave of failures, drawing parallels to the collapse of Silicon Valley Bank in 2023.<\/p>\n

Ardoino\u2019s concerns center on the European Union\u2019s regulatory framework for stablecoin issuers, which he argues exacerbates systemic risks rather than mitigating them. \u201cThe regulation was pushing us to keep 60% of our reserves in uninsured cash deposits in Europe<\/strong>,\u201d the Tether CEO told host Pascal H\u00fcgli, describing a scenario where stablecoin issuers are forced to park billions in vulnerable bank accounts. \u201cImagine that you have 10 billion euros in market cap of your stablecoin in Europe. Then 60% needs to be kept in uninsured cash deposits in a bank. Uninsured cash deposit means that the bank insurance in Europe is only 100,000 euros. If you have 10 billion, 100,000 euros is like a spitting on a fire.<\/strong>\u201d<\/p>\n

Tether CEO @paoloardoino<\/a> to @pahueg<\/a>: “Many” European banks will “blow up” in the “next few years.” pic.twitter.com\/HimWWYrbcU<\/a><\/p>\n

\u2014 Josh Caplan (@joshdcaplan) May 1, 2025<\/a><\/p>\n

The math, as Ardoino laid out, is grim. With 60% of a stablecoin\u2019s reserves\u2014equivalent to 6 billion euros in his example\u2014held in uninsured deposits, banks\u2019 fractional reserve practices amplify the risk. \u201cThey can lend out 90% of it to people that want to buy a house, that want to start a business, and all that,\u201d he explained. \u201cSo 5.4 billion euros will be lent out by the bank and 600 million euros will be cut.\u201d In the event of a 20% redemption demand, or 2 billion euros<\/strong>, Ardoino warned that banks would fall short of cash. \u201cYou go to the bank and you tell the bank, well, I want 2 billion euros. And the bank says, well, I only have 600 million euros.\u201d<\/p>\n

Ardoino predicts that the fallout would be catastrophic for stablecoin issuers<\/strong>. \u201cAs a stablecoin issuer, you go bankrupt. Not because of you, because of the bank,\u201d the Tether CEO said. \u201cSo the bank goes bankrupt and you go\u2014like, so is\u2014I mean, and\u2014and, oh, sure, the government will say, ah, told you so, stable coins are very dangerous.\u201d<\/p>\n

Ardoino\u2019s critique extends to the broader European banking ecosystem, which he believes is ill-equipped to handle stablecoin operations. Major institutions like UBS, which he described as \u201csystemic risk banks,\u201d refuse to work with stablecoin issuers, forcing companies like Tether to rely on smaller, less stable financial institutions. \u201cThey need to use very small banks,\u201d he said, warning that these institutions are particularly vulnerable. \u201cMark my words, as happened with Silicon Valley Bank that, by the way, almost killed them in 2033, they will face the same issues.\u201d<\/p>\n

\u201cFour banks blew up last\u2014in the last two years in the US<\/strong>,\u201d he added. \u201cMany banks will blow up in Europe in the many years\u2014in the next few years.<\/strong>\u201d<\/p>\n

Ardoino\u2019s comments come as Tether plans to launch a stablecoin product in the U.S. as soon as this year.<\/p>\n

“We are just exporters of what we believe to be the best product the United States ever created \u2014 that is, the US dollar,<\/strong>\u201d the Tether CEO said in an interview with CNBC.<\/p>\n<\/p>\n

As of April 25, Tether\u2019s USDt solidifies its position as the leading stablecoin, securing a commanding 66% of the market, according to Cointelegraph<\/a>. With a market capitalization hovering around $150 billion, per CoinGecko, USDt underscores its pivotal role in the crypto ecosystem. The Department of the Treasury\u2019s Q1 2025 report projects a robust future for USD-pegged stablecoins, anticipating their combined market cap to soar to $2 trillion by 2028, signaling a transformative shift in digital finance, per the crypto-focus news outlet<\/a>.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 05\/03\/2025 – 07:35<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/tether-ceo-paolo-ardoino-many-european-banks-will-blow-next-few-years<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Tether CEO Paolo Ardoino: ‘Many’ European Banks Will ‘Blow Up’ In The Next Few Years Tether CEO Paolo Ardoino has issued a dire warning to…<\/p>\n","protected":false},"author":0,"featured_media":1533882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1533881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1533881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1533881"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1533881\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1533882"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1533881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1533881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1533881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}