Stablecoin issuer Tether CEO Paolo Ardoino says central bank digital currencies (CBDCs) could turn money into a tool of surveillance.
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Speaking at TOKEN2049 in Singapore, he told James Heckman, founder of RTB Digital and publisher of TheStreet Roundtable , that while governments see CBDCs as progress, they could easily be used to control people instead of empowering them.
For the uninitiated, CBDCs are digital forms of a nation's fiat money issued and controlled by its central bank. Unlike cryptocurrencies such as Bitcoin, they are fully centralized and traceable.
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CBDCs mean control
Heckman began the conversation with a blunt warning.
"When I first heard about blockchain and Bitcoin…I thought it was like inventing the nuclear bomb, a powerful technology that could, in the wrong hands, be disastrous."
He warned that CBDCs could give governments total oversight of digital transactions. "You've built an infrastructure that, in the hands of today's Eisenhower, could be in the hands of Stalin tomorrow," Heckman said. "Have we not created something that could very easily, at the point of a gun, be in the wrong hands?"
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"Bitcoin is freedom": Ardoino
Ardoino agreed, saying CBDCs come with real risks to privacy and autonomy. "That is something I think about a lot," he said. "We are becoming the better payment layer, a better transport system for the dollar. But the ultimate freedom tool is Bitcoin."
"If you own Bitcoin in your non-custodial wallet, that's it — that's the ultimate expression of freedom," he said. "Everyone should have a little Bitcoin, learn to secure their private keys, and understand what true financial sovereignty feels like."
He added that CBDCs could let governments monitor, freeze, or censor money in real time. "CBDCs turn money into a permissioned network controlled from the top. Bitcoin does the opposite. It gives power back to individuals."
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Stablecoins still matter
Ardoino also defended the role of stablecoins like Tether's USDT, especially in countries struggling with inflation or capital controls.
"I was never the person saying USDT is better than Bitcoin, absolutely not," he said. "USDT is a better expression of the potential of the U.S. dollar."
"Our job is to help the United States bring dollar access to places where it doesn't exist like Nigeria, Turkey, Argentina, Bolivia," he said. "For people living with collapsing local currencies, just being able to transact in a stable dollar is already life-changing."
He said stablecoins offer a practical middle ground between full decentralization and government control. "If you're in Nigeria, your problem isn't owning Bitcoin. It's that your local currency is collapsing. Having digital dollars is good enough when what you have today is much worse."
Stablecoins have taken the crypto world by storm. As per CoinGecko , the total stablecoin market cap stands at $309 billion, with Tether (USDT) commanding roughly 57.5% of the share at $177.6 billion, followed by USD Coin (USDC) with 24.4% at $75.3 billion.
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The global picture
Notably, 137 countries and currency unions, representing 98% of global GDP, are now exploring central bank digital currencies, according to the Atlantic Council's CBDC Tracker (July 2025). That's up from just 35 countries in 2020, marking a rapid acceleration in digital currency research and pilots.
So far, three nations, the Bahamas, Jamaica, and Nigeria have fully launched their own CBDCs, while 49 others are in pilot phases.
Ardoino believes stablecoins and Bitcoin belong to people.
"The difference between a CBDC and a stablecoin like USDT is simple," he said. "One belongs to the people. The other belongs to the state."
Politicians, analysts on CBDCs
President Donald Trump has vowed to block a U.S. CBDC , calling it a "dangerous threat to freedom."
Florida Governor Ron DeSantis banned CBDCs from the state's definition of money , citing "government overreach." Meanwhile, Rep. Tom Emmer pushed the Anti-CBDC Surveillance State Act , saying it prevents unelected bureaucrats from creating a "financial surveillance tool."
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However, not everyone agrees. Sen. Elizabeth Warren said in 2022 that "it's time for us to move in that direction," supporting the idea of a digital dollar. Federal Reserve Chair Jerome Powell has taken a more cautious stance, noting that the U.S. is "nowhere near recommending — let alone adopting — a central bank digital currency."
Globally, BIS chief Agustín Carstens said central banks would have "absolute control" over CBDC use , while Bank of America analysts called CBDCs the "natural evolution of money."
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This story was originally reported by TheStreet on Oct 7, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
