📣 Paolo Ardoino: Tether’s Strength Rivals Germany’s
posted 2 Oct 2024
Tether’s USDT stablecoin established itself as a major force in the global financial system. Its uses are now expanding well beyond the crypto world, notes Paolo Ardoino, CEO of Tether.
During an interview with Bullish CEO Tom Farley, Ardoino underscored USDT’s pivotal role in countries struggling with hyperinflation and unreliable banking systems.
Although USDT was initially developed to streamline cryptocurrency transactions, it has transformed into a "lifeline" for nations like Argentina and Turkey, where locals are searching for stable currency options amid economic turmoil.
USDT works much better outside of the U.SArdoino remarked.
Previously, as Tether’s CEO Paolo Ardoino mentioned, residents of high-inflation countries had to resort to black market operations to trade USD.
USDT, pegged to the USD at a 1:1 rate, offers a reliable alternative, helping people in fragile economies shield their savings from inflation and currency instability.
Global Inflation Rates Source: tradingeconomics.com
Interestingly, more than half of all USDT in circulation — $61 billion — has been issued on the Tron blockchain. Tron has much lower transaction fees than Ethereum, which holds $54.3 billion worth of USDT.
With Ethereum gas fees exceeding $14, Tron’s fees stand at just 20 cents. This makes USDT invaluable in developing countries, where micro-transactions are frequent, and high fees are prohibitive.
Imagine someone in Haiti earning $1.34 per day. How can they pay $5 in transaction fees?Ardoino questions.
The soaring consumer demand for Tether has pushed USDT’s market cap to nearly $120 billion, positioning it as the world’s third-largest cryptocurrency, trailing only BTC and Ethereum.
Tether’s second area of expansion centers on securing USDT with U.S. Treasury bills. The company has already purchased more than $100 billion in these assets, which China previously offloaded.
We added resiliency to the ownership of the U.S. dollar, so now you don't have one single country, one single decision maker that can sell hundreds of billions of T-bills at once,Ardoino explains.
USDT and Tether are the best friends for the U.S. dollarhe concludes.
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