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Tether’s USDT has become the most used digital dollar globally, particularly in economically unstable countries like Argentina and Turkey.
Key Notes
Tether's USDT has evolved beyond cryptocurrency, becoming a vital digital dollar globally, according to the company's CEO.Ardoino explains that many countries, USDT offers a stable alternative to unstable local currencies.USDT currently boasts a market cap of $120 billion.Tether’s USDT USDT $1.00 24h volatility: 1.0% Market cap: $0.00 B Vol. 24h: $0.00 B , often conceived as a cryptocurrency, has evolved into the most used digital dollar globally, according to Tether CEO Paolo Ardoino. During a recent interview, Ardoino explained how stablecoins, particularly USDT, have become critical in the crypto world and beyond.
By being pegged to real-world assets, USDT and other stablecoins offer investors a way to navigate the often volatile cryptocurrency markets, providing stability without the risks associated with cryptocurrencies like Bitcoin.
However, USDT’s role extends far beyond crypto trading. Ardoino explained that in countries with economic instability, such as Argentina and Turkey, USDT has emerged as an important alternative to unstable national currencies.
Previously, residents in these regions had to resort to black markets to acquire US dollars as a store of value. However, Ardoino explains that USDT now offers them a legal and accessible alternative. He points out how the ease of access in such regions contrasts with the United States, where users have a variety of financial tools like credit cards and apps such as PayPal and Venmo.
Strong Market Position
USDT’s global appeal is evident from its dominant position in the market. With a market capitalization nearing $120 billion, Tether’s stablecoin is not only the largest of its kind but also the third-largest cryptocurrency overall.
Interestingly, the second-largest stablecoin, Circle’s USDC, has a market cap of $35.6 billion. This major gap showcases how indispensable USDT has become for users seeking reliability.
Tether’s robust financial performance reflects this demand. In its second-quarter 2024 earnings report, the company posted $1.3 billion in net operating profits. At the time, Ardoino stated that over $1 billion will be allocated to new investments over the next year.
Tether Reserve Conspiracy
In its early days, Tether faced considerable skepticism about the reserves backing USDT. Critics questioned whether the stablecoin was fully backed, leading to major regulatory scrutiny. However, the company has since taken steps to clear any doubts.
Today, its funds are managed by renowned financial services firm Cantor Fitzgerald. The firm’s CEO, Howard Lutnick, has publicly assured investors that Tether’s reserves are in place, with nothing to hide.
Responding to persistent conspiracy theories, Ardoino stated that detractors should “get out from their mother’s basement”.
Notably, as of July 31, Tether holds $97.6 billion in US debt, surpassing major countries like Germany, the UAE, and Australia. “We’ve added resilience to the ownership of the US dollar,” said Ardoino. By holding such a large share of US Treasuries, Tether ensures that the dollar is distributed among multiple entities. This reduces the risk of any single nation or institution impacting the market with a sudden sale of T-bills.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
