Circle’s CEO, Jeremy Allaire, has criticized Tether (USDT), the leading stablecoin on the crypto market. In his recent tweet, he described Tether as an unregulated offshore banking solution for China and Asia. He added that, the coin’s main selling point is its non-compliance and opacity.

(2/3) Meanwhile Tether continues to be largest stablecoin, offering an attractive option as an unregulated offshore USD shadow banking solution for China and Asia. It's greatest feature is its non-compliance and opacity. — Jeremy Allaire (@jerallaire) January 3, 2020

Meanwhile, Paolo Ardoino has responded to Allaire’s criticism claiming that Tether’s greatest feature is its ability to create visionary products. He added that the company also listens to its customers. He claimed things didn’t look good for Circle’s USDC.

Its great feature is the ability of @Tether_to management of creating visionary products and listen to customers. Tether understands the needs of #crypto since 2014.

Also Asia is an important market, so you shouldn't generalize. Does not look good for USDc.



Happy new year 🥳 — Paolo Ardoino (@paoloardoino) January 3, 2020

Meanwhile, Allaire boasted about the success of the USDC stablecoin, which was launched by Circle and Coinbase in 2018. USDC is already among the 25 biggest crypto on the market, with a market cap of about $520 million.

(1/3) While the industry and media hype out over future/un-launched 'stablecoins' and CBDCs, the market is speaking for itself. USDC has continued to outpace (~$520M in circulation), PAX has flat-lined at $240M, TUSD in rapid decline and GUSD and BUSD are DOA. — Jeremy Allaire (@jerallaire) January 3, 2020

Blockchain Capital recently predicted that the USDC could grow by about 300% in terms of market cap and trading volume. Moreover, USDC will become one of the most successful coins in 2020.

2020 predictions from our State of Crypto year-end wrap-up (full report: https://t.co/ismqqKs1kA)



#7 is controversial. Those that don't understand BTC will panic. However, not only would it be a positive development, it's also an inevitable part of a successful BTC trajectory. pic.twitter.com/ePvqpH7ASz — Spencer Bogart (@CremeDeLaCrypto) December 13, 2019

USDC stands out as a regulated version of USDT, that is fully backed by fiat and very transparent. However, it has a major drawback that stems from its regulatory compliance, which is lack of fungibility. Since the likes of USDC and GUSD are dependent on strict banking relationships, they have a backdoor system that enables blacklisting any suspicious transactions.

Featured image courtesy of Coindesk.