Paolo Ardoino, CEO of stablecoin issuer Tether, recently accepted an interview with foreign media CoinDesk and said that USDT has occupied a place in the global financial system, especially in countries with high inflation and unstable financial facilities such as Argentina and Turkey. USDT is crucial . In the past, people in these countries had to resort to black market transactions in order to obtain U.S. dollars. Now through USDT, this dilemma can be improved. Tether’s reserve assets are also known for holding a large amount of U.S. debt. For this reason, Ardoino also calls himself the best partner of the U.S. dollar.
The U.S. payment system is perfect, but USDT has more advantages in global cross-border payments
Ardoino pointed out that there are many different payment methods and platforms in the United States, such as banks, credit cards, debit cards, Venmo, Paypal, Cash App, etc., which make the circulation of U.S. dollars very convenient and can meet the daily payment needs of the American people. , there is less need to use USDT. However, the payment methods mentioned above may not be very popular outside the United States, so USDT is more useful, especially as it makes cross-border payments more convenient and circumvents local financial restrictions.
This may explain why USDT is not only the largest stablecoin with a market capitalization of nearly $120 billion, but also the third largest cryptocurrency after Bitcoin and Ethereum, and is far more than three times the market capitalization of USDC issued by Circle.
In addition, the VISA research report we compiled previously also pointed out that habit may be a major factor in USDT’s popularity. VISA interviewed local people in developing countries and asked them whether they would switch from USDT to other stablecoins. Most of the interviewees said that they continue to use USDT because of "habit". The main reason why USDT is so popular is its high stability and wide range of uses. These factors also increase users' trust in USDT.
Low-income countries give priority to Tron, and Tether becomes the best partner of the US dollar
Ardoino said: “Imagine that users living in low-income countries like Haiti earn less than $1.40 a day, and you have to ask them to pay $5 to $6 in transaction fees on Ethereum or other chains. How is this possible, but Tron’s procedures The fee is only 20 cents, so of course they will give priority to Tron.” He added that more than half of USDT is issued on the Tron blockchain because the transaction cost is lower and it can better meet the needs of users in low-income countries.
Tether has also attracted attention for holding a large amount of U.S. Treasury bonds. In response to this, Ardoino humorously said: "We have made holding U.S. dollars more flexible. Now no single country or decision maker can make it happen all at once." Hundreds of billions of U.S. Treasury bonds have been sold, and USDT and Tether can be said to be the best partners of the US dollar.”
Tether reserves and audit issues are questioned
Tether's reserve issues have always been questioned. In the early days of its establishment, it encountered difficulties in cooperating with banks. It once opened and closed accounts in many countries around the world, such as Qatar, China, Taiwan and Canada. Because the adequacy of reserves has become a focus of attention, Tether has also begun to regularly disclose asset audit reports to prove that they indeed have sufficient reserves to support all issued USDT, increasing the market's trust in them.
Claiming to conduct regular audits and having sufficient reserves, he responds to doubters
But Ardoino claimed that Tether’s reserve management has become simpler. Most of the funds are managed by Cantor Fitzgerald, a financial services company, and its CEO Howard Lutnick ensured that Tether’s reserves are sufficient to support USDT. Ardoino also mentioned that Tether, like other competitors, undergoes regular asset audits by large accounting firms to ensure reserve transparency. Regarding the doubts from the outside world, he said: "Those who believe in conspiracy theories should grow up."
(The US Consumer Protection Organization warns Tether: It has not yet conducted an audit and may become the next FTX)
This article Tether: USDT injects new life into high-inflation countries and is the best partner of the US dollar. It first appeared on Chain News ABMedia.
