Tether: Shielding Buying Power in Inflation-hit Economies, Says CEO Paolo Ardoino
Summary:
Tether CEO Paolo Ardoino stated in an interview that the major focus of the world's largest stablecoin, Tether USD (USDT), is shielding the buying capacity of individuals in economies struggling with inflation. Tether is primarily meant to facilitate accessibility to financial services and the U.S. dollar for the unbanked population. His comments highlighted Argentina, where the national currency has depreciated significantly, compelling people to seek alternate financial solutions. Ardoino concluded that Tether aims to provide stability to people in such emerging markets, assuring that they can redeem the stablecoin for $1, irrespective of any scenario.
Tether USD (USDT), the world's leading stablecoin, was primarily designed to safeguard the spending capacity of individuals in economies ravaged by inflation, stated Tether CEO Paolo Ardoino. In a one-on-one discussion with Cointelegraph, Ardoino noted that Tether is committed to assisting those without traditional banking services to access USDT. He mentioned, "USDT is a salvage tool for those neglected by the banking industry. Despite being valuable entities, these 300 million individuals are overlooked by the sector due to their poverty."
With soaring inflation, individuals in emerging economies are progressively searching for alternative financial solutions, such as the U.S. dollar. This problem is particularly pertinent in Argentina, which has seen its currency lose 98% of its value against the dollar, Ardoino says. He mentioned, "If you're living in Argentina, what you'd want is to obtain U.S. dollars...We perceive USDT as the tool that can assist these individuals. Hence, all our focus is on assuring it is as secure as it can be. That's the main reason we have T-bills, gold, and Bitcoin. But our strategy now is to fully back it with T-bills in the next few quarters.”
Tether stands as the most dominant stablecoin worldwide with a market capitalization exceeding $109 billion, surpassing Circle’s USDC, which takes second place with a $33 billion market capitalization, as per CoinMarketCap data. Ardoino attributes Tether’s triumph to successfully catering to a crucial market, primarily those needing financial services and U.S. dollars. Contrarily, Ardoino points out, other stablecoin issuers aim at marketing their services to the traditional banking industry, which already has all the access it requires.
"People living in emerging markets are the ones who need a stablecoin. They require stability and need assurance that come what may, they can redeem it for $1." Ardoino further disclosed that Tether successfully finished the 'gold standard' safety audit, the System and Organization Controls 2 (SOC) audit on April 1, indicating the highest security compliance level achievable for an organization.
Published At
4/19/2024 4:16:49 PM
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