While the cryptocurrencies are gaining mainstream attention, so does centralized stablecoins like Tether (USDT) and USD Coin (USDC).
Now, Ethereum co-founder, Vitalik Buterin, claims that these centralized stablecoins are on the verge of becoming a decision-maker in the near future, the hard forks that are always in contention.
Vitalik made this statement while in conversation at the BUIDL Asia conference held at Seoul on August 3. He was in talks with Near protocol co-founder, Illia Polosukhin regarding Ethereum merge.
The Ethereum co-founder was seen shifting his stance towards centralized stablecoins as he believes these centralized stablecoins will help decide which blockchain protocols the industry will accept for hard forks.
Whenever a blockchain network’s protocol undergoes a significant change that leaves two completely independent versions, this is known as a “hard fork.” And it ends where one chain is given more importance than the other.
Also Vitalik claims that in the future the crypto space will see 100 billion USDT on one chain and 100 billion USDT on the other, so Tether should stop preferring one over the other.
Centralized Stablecoins To Decide Future ETH Hard Forks
When he was questioned if Ethereum’s upcoming merge would experience anything similar, Vitalik answered that anything such would not happen. He also noted that the centralized stablecoin issue is more related with future hard forks.
However, Vitalik claimed that in the coming five to ten years, Ethereum could see more troubled hard forks, where these centralized stablecoins will play a significant role.
The upcoming Ethereum merge which is scheduled on September 19 is an important technical update for the network, because this will help the system to upgrade from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism
The merge was given the green light after the successful launch of the GoEarly testnet recently last month.