Tether CEO Paolo Ardoino has publicly ridiculed Europe’s central bank digital currency (CBDC) ambitions, targeting the European Central Bank’s (ECB) Digital Euro project. His criticism comes as EU regulators grapple with challenges in rolling out the Markets in Crypto-Assets (MiCA) framework.
Ardoino’s Sarcasm on the Digital Euro
In a pointed post on X (formerly Twitter), Ardoino quipped:
“Santa will bring us all the Digital Euro.”
The remark highlights Tether’s skepticism about the ECB’s ability to deliver a viable CBDC. Launched in November 2023, the Digital Euro project is still in its early stages, aiming to serve as a secure and privacy-conscious complement to cash.
Tether, as the issuer of USDT, the world’s largest stablecoin, has consistently positioned itself against CBDCs, arguing that they lack the efficiency and market traction of private stablecoins. Ardoino’s comments underline the growing competition between CBDCs and private stablecoins in Europe.
MiCA Regulation Under Scrutiny
Alongside mocking the Digital Euro, Ardoino has also resisted Europe’s flagship crypto regulation, the MiCA framework, which came into force in December 2024.
MiCA’s goal is to harmonize crypto regulation across the EU. Yet its implementation has been inconsistent:
- France’s AMF, Austria’s FMA, and Italy’s Consob jointly warned of “regulatory shopping,” where firms exploit looser regimes in certain jurisdictions.
- Uneven enforcement could undermine investor protection and Europe’s competitiveness in global crypto markets.
Tether’s Resistance to MiCA Requirements
Tether has so far refused to comply with MiCA, citing its strict requirements for stablecoin issuers:
- Full reserve backing with liquid assets.
- Transaction caps on daily stablecoin usage.
- Significant reserve holdings with EU banks.
- Independent audits of reserves — a rule Tether has resisted since its last full audit in 2017.
Instead, Tether continues to publish attestations of its reserves but avoids external audits. Ardoino argues that mandatory audits could expose issuers and auditors to reputational risks, referencing scandals like the FTX collapse.
This stance contrasts with firms such as Coinbase, Kraken, and Bybit, which have already secured MiCA approvals.
The Bigger Picture
Ardoino’s criticism signals Tether’s unwillingness to operate under Europe’s strict new regime, even as regulators push for more transparency and stability in the crypto market.
- The Digital Euro faces skepticism from the private sector.
- MiCA enforcement is exposing regulatory gaps between EU states.
- Tether remains outside Europe’s new framework, while competitors integrate.
As the EU pushes ahead with CBDCs and stricter crypto oversight, the standoff with Tether underscores a broader battle: private stablecoins vs. state-backed digital money.
