Due to a perceived lack of user engagement, the world’s leading stablecoin issuer, Tether, has halted its Bitcoin Omni Layer edition. Notably, this particular iteration of USDT was among the first stablecoins to be introduced to the market.
In a recent announcement, Tether’s team also stated their intention to discontinue the Kusama (KSM) and Bitcoin Cash (BCH) variants.
Tether Suspends Token Issuance On Bitcoin Omni Layer
According to the official statement, no plans exist to create additional Tether tokens on the Bitcoin Omni Layer, Bitcoin Cash, or the Kusama network. However, the firm stated that exchanging Tether for other assets will be available for at least one year.
Within this period, the company intends to provide additional updates on managing these exchanges after a year. The Bitcoin Omni Layer is a unique smart contract on the Bitcoin (BTC) blockchain.
Its original name was “Mastercoin,” it debuted in July 2013, two years before Ethereum’s emergence. Omni Layer Tether was launched in October 2014, marking a significant milestone as the first stablecoin on this platform.
This accomplishment pushed it to the top of the stablecoin market capitalization rankings, surpassing competitors like BitUSD and NuBits. In a recent announcement, the stablecoin issuer acknowledged the historical significance of Omni Layer Tether in developing the crypto industry.
The firm stated that it recognized the significance of its decision, given the critical role Omni played as Tether’s first transport layer in 2014. During Tether’s early years, the Omni Layer, intricately linked to the Bitcoin network, was indispensable to its operations.
Tether further acknowledged the team’s evolution as the broader crypto and blockchain technology space evolved too.
Challenges Of Omni Layer
Furthermore, the team stated that the Omni Layer had encountered difficulties due to the scarcity of popular tokens and the widespread availability of USDT on other blockchain protocols. This prompted other crypto exchanges to use alternative transport layers rather than Omni, resulting in a significant decrease in its use and forcing the company to discontinue its issuance through this channel.
However, Tether has confirmed its willingness to reconsider reviving the Omni Layer version if its usage increases. Furthermore, the company revealed ongoing efforts to develop a novel Bitcoin smart contract system known as “RGB.”
Once fully developed, the intention is to reintroduce USDT in an RGB iteration and re-establishing its presence on the Bitcoin blockchain. Throughout 2023, the stablecoin market has seen increased competition, putting Tether’s once-unrivaled dominance to the test.
A significant shift was when PayPal introduced its PayPalUSD (PYUSD) stablecoin on August 7, adding to the growing quest for market control. Earlier, Binance unveiled its First Digital USD (FDUSD), creating more competition in the burgeoning industry.
These developments demonstrate the evolving dynamics in the stablecoin market.
