The US market is not necessary for Tether, the blockchain-based infrastructure that underpins USDT, the most popular stablecoin in the world. After leaving the stage at Token2049 in Dubai, Paolo Ardoino, the CEO of Tether.
When Tether was first developed in 2014, the slow speed of fiat money transfers was causing problems for bitcoin trading. Paolo characterized the early cryptocurrency landscape as confined to a small number of exchanges, with significant obstacles to arbitrage opportunities because to the cumbersome nature of cross-border money transfers.
A blockchain-based dollar that could move as quickly as the cryptocurrencies it was traded against was his company's solution. The function of USDT has grown outside of the cryptocurrency sector during the past four years. Paolo told us that regular people in developing or underdeveloped economies are using the stablecoin.
Many people in nations like Argentina and Turkey find that USDT offers a reliable substitute for their local currencies, which frequently depreciate and make it harder for them to keep their purchasing power.
Paolo informed us that USDT is the reason these communities are searching for it. He calls his invention the most "basic" concept anyone has ever thought of, and a "simple" product.
And it functions without fail. With pride, he stated, "We were there for them when they needed us most. "We no longer provide services to customers in the United States." They are not our main customer base. Neither Tether Gold nor USDT are necessary for the US economy.
Speaking of minting new coins, Paolo talked about the meticulous monitoring that goes into it. He clarified that Tether is actively pursuing licenses in numerous jurisdictions, with an emphasis on emerging markets, and that it functions under the supervision of the FBI.
The finest access to banking is found in the United States and Europe. They are the most able to obtain debit and credit cards. Paolo noted that using a stablecoin, you cannot accomplish that.
Paolo said, "Tether has been and is still the most scrutinized company in the world," in reference to the regulatory issues and scrutiny surrounding the company. But it challenges us to perform better. Better than the banks, he declared with pride, pointing out that traditional banks run on fractional reserves, while Tether is fully backed.
Given that regulators are frequently swayed by the established financial system, Paolo is not shocked by the regulatory obstacles. Nevertheless, he is confident in stablecoins' potential, particularly in regions where remittances play a significant role. To quote him:
"Regulations that support stablecoins should be prioritized by smaller countries as they will accelerate and improve their economic systems."
Paolo revealed that there was a lot of doubt in Tether's early days. Stablecoins were an idea that no one believed in. However, their drive to demonstrate to the world the usefulness and stability of stablecoins was only strengthened by their disbelief.
When stablecoins like USDT gained popularity, the financial sector shifted from being reluctant to collaborating with them. Finding bankers isn't as difficult as it formerly was. Everyone is drawn in by the promise.
The topic then turned to Tether Gold, their other ground-breaking strategy for protecting against market volatility. Paolo informed us that his company introduced Tether Gold, which is entirely backed by gold due to the metal's proven value. He emphasized the timeless value of gold by drawing comparisons to historical stability, stating, "Just like Cicero said two thousand years ago, an ounce of gold bought you a fine outfit then, and it still does today."
Paolo responded to our inquiry about possible economic downturn situations by assuring us that Tether is extremely well-prepared. The support of Tether Gold guarantees their stability even in the event of an American government default. It's reminiscent of the Weimar Republic. "Survival requires a stable reserve," he stated.
According to Paolo, Tether is also making significant investments in AI infrastructure to foster a variety of viewpoints and advances within the AI community. He went on to say that Tether is dedicated to being a well-rounded technical development that upholds the autonomy of its users and encourages the moral use of AI.
In closing, we asked Paolo for any parting remarks or words of wisdom for those interested in the cryptocurrency space. And his response was as follows:
"While Bitcoin ETFs are fantastic, educate yourself on self-custody."
April 2024, Cryptoniteuae