The issuer of Tether, one of the pioneering stablecoins, has announced the discontinuation of its Bitcoin Omni Layer version, as well as the Bitcoin Cash and Kusama iterations. This decision comes as a result of dwindling user interest, according to an official statement released on August 17.
The Bitcoin Omni Layer version of Tether holds historical significance, being one of the earliest stablecoins to emerge in the cryptocurrency domain. However, the issuer has determined that these particular versions no longer align with the current market dynamics and user preferences.
Effective immediately, the issuance of new tokens on the Bitcoin Omni Layer, Kusama, and Bitcoin Cash platforms will cease. However, the company assures users that redemption mechanisms will remain accessible for a minimum of one year. As the one-year milestone approaches, further details regarding the handling of redemptions will be communicated through upcoming announcements.
In its official statement, the stablecoin issuer acknowledged the pivotal role that Omni Layer Tether played in shaping the trajectory of cryptocurrency.
Tether Faces Setback as Omni Layer Struggles Amidst Increasing Stablecoin Competition
Tether’s Omni Layer has encountered hurdles attributed to the absence of widely-adopted tokens and the proliferation of USDT on alternative blockchains. This predicament prompted cryptocurrency exchanges to explore alternative transport layers, sidelining Omni. The consequence of this shift has been a notable decline in the utilization of USDT on the Omni Layer, ultimately compelling the company to discontinue its issuance through this platform.
Highlighting the situation, Tether has expressed its willingness to revisit the Omni Layer implementation should its usage experience a resurgence. Additionally, the company has divulged its ongoing efforts towards the creation of a novel Bitcoin smart contract system, christened “RGB.” With this new system in progress, Tether envisions the reissuance of the stablecoin in an RGB version, effectively reintegrating Tether onto the Bitcoin blockchain.
As the year unfolds, the competitive landscape within the stablecoin arena has reached a fever pitch in 2023, posing challenges to Tether’s long-standing dominance. Notable contenders have emerged, as exemplified by PayPal’s unveiling of the PayPal USD (PYUSD) on August 7th. Furthermore, Binance made waves by listing the First Digital USD (FDUSD) on July 26th. These developments underscore the intensifying rivalry among stablecoin providers, setting the stage for a dynamic and transformative period in the cryptocurrency ecosystem.