Paolo Ardoino: $USDT Stablecoins increase demand for the U.S. dollar"
The CEO of US-based Tether has sought to explain the role the company's $USDT steblecoins play in increasing international demand for US dollars.
Paolo Ardoino posted a tweet calling $USDT an important financial instrument for people in developing countries with unstable economies and lack of banking services. $USDT has become a stable alternative to the dollar that helps people and businesses maintain purchasing power in the face of rampant inflation and devaluation of local government currencies. In addition, steblecoins can be used without involving traditional financial infrastructure that often "throws people without a bank account overboard," the CEO reasoned.
The use of USDT steblecoins is having a worldwide impact, the businessman believes. As Ardoino put it, Tether's presence in the market as a major buyer of U.S. Treasury bills underscores the company's growing influence. It reinforces the relationship between digital assets and traditional finance, supporting demand for U.S. Treasuries.
"Stablecoins pegged to the dollar are shaping demand for U.S. government debt. More than 300 million people around the world use USDT as a digital dollar, and it's like a lifeline for poor countries. By providing dollar stability in emerging markets with USDT, Tether is one of the top three global buyers of short-term U.S. Treasury bills," Ardoino wrote on social media X.
Tether's CEO recently expressed fears that the European Union's Cryptocurrency Regulation Act (MiCA) would make it more difficult for issuers to operate and make stablecoins extremely vulnerable to regulators. Last week, Paolo Ardoino called bitcoin the only decentralized cryptocurrency "that is governed only by mathematics, and this process cannot be changed."
