• Thu. Jul 18th, 2024

Paolo Ardoino Claims That More Than 300 Million People Rely on Tether’s USDT

Phillip Bryant

ByPhillip Bryant

Jun 15, 2024
Paolo Ardoino Claims That More Than 300 Million People Rely on Tether's USDT

Tether’s Chief Executive Officer, Paolo Ardoino, recently brought attention to the significant part that USDT plays in boosting the demand for the United States dollar in economies that are still in the process of developing.

Ardoino responded to an article that suggested the adoption of dollar-backed stablecoins as a component of the demand for public debt in the United States.

More Than 300 Million Individuals Utilize USDT

Ardoino disclosed that more than 300 million people worldwide use USDT as a digital dollar, which enables them to provide essential financial services to communities in developing countries. By enhancing the efficiency of money transfers and storage, this stablecoin circumvents traditional financial systems, which frequently fail to account for individuals who do not have access to banking services.

“USDT is utilized by over 300 million individuals worldwide as a digital dollar, offering essential utility to entire communities in developing nations.” These individuals are not adequately served by the banking sector, often remaining without access to banking services and vulnerable to the adverse effects of high inflation and rapid devaluation of their national currencies.”

— Paolo Ardoino

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If Tether were to be regarded as a nation, it would surpass the rankings of countries such as Indonesia, Pakistan, and Nigeria. As a consequence, the widespread adoption of USDT has a significant influence on the financial system of the entire world.

The fact that Tether is ranked among the top 20 buyers overall and is one of the leading buyers of short-term US Treasury Bills worldwide was brought to the attention of Ardoino. This exemplifies the growing influence that Tether is having in the world of finance, as well as the increasing convergence of digital assets with traditional financial systems.

According to the attestation report for the first quarter of 2024, Tether had approximately $90.87 billion worth of US Treasuries in its possession as of March 31, 2024. The portfolio includes both direct and indirect ownership of US Treasuries. The latter type of ownership is made up of overnight reverse-repurchase agreements collateralized by US Treasuries. Using money market funds, the company also makes direct investments in US Treasuries. This is an additional investment strategy.

With a market capitalization greater than $1112 billion, the USDT issued by Tether is the most prominent stablecoin currently available on the market. According to CoinMarketCap, digital assets capture approximately 70 percent of the market and have emerged as the cryptocurrency traded the most frequently, surpassing even Bitcoin in terms of activity.

In addition, a recent report by Chainalysis highlights the increasing popularity of stablecoins like USDT in emerging markets like Nigeria, Turkey, Thailand, and Brazil. In spite of its overwhelming control, Tether is constantly under the watchful eye of regulators.

Ardoino quickly refuted Ripple CEO Brad Garlinghouse’s suggestion that the US government could potentially single out the asset, dismissing it as unfounded.

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Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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