The current cryptocurrency market relies heavily on Tether’s $USDT, with over 300 million people worldwide depending on this stablecoin. Paolo Ardoino, the CEO of Tether, recently stated in an interview that $USDT is being used by over 300 million individuals as a digital dollar, providing crucial financial services to communities in developing countries. This stablecoin not only enhances the efficiency of fund transfers and storage but also circumvents traditional financial systems that often exclude underserved groups.
Ardoino emphasized, “Over 300 million people utilize $USDT as a digital dollar, serving as a lifeline for communities in developing countries. These individuals are excluded from the banking industry, with the majority still without bank accounts and facing issues of high inflation and rapid devaluation of national currencies.”
This means that if Tether were a country, its population would surpass that of nations like Indonesia, Pakistan, and Nigeria.
Paolo Ardoino: $USDT could become a substitute for the US dollar
Ardoino also highlighted that the significance of $USDT is growing globally, especially in unstable economies where it could potentially become a substitute for the US dollar. He emphasized that the stability and reliability of $USDT protect investors’ purchasing power in regions struggling with severe inflation and currency devaluation.
He pointed out that Tether is one of the three largest purchasers of short-term US Treasury bonds globally, ranking among the top 20 overall. According to Tether’s first-quarter attestation report, as of March 31, 2024, the company held approximately $90.87 billion in US Treasury bonds. These holdings include both direct and indirect investments in US Treasury bonds, with the latter including overnight repurchase agreements collateralized by US Treasury bonds. The company also invests directly in US Treasury bonds through money market funds.
Percentage of US Treasury bonds, cash, and cash equivalents in outstanding Tether tokens
Currently, Tether’s $USDT is the dominant stablecoin in the industry, with a market capitalization exceeding $111.2 billion. According to data from CoinMarketCap, this digital currency commands around 70% of the market and is the most traded cryptocurrency, surpassing even Bitcoin.
Furthermore, according to a report by Chainalysis, the demand for $USDT is steadily growing in emerging markets such as Nigeria, Turkey, Thailand, and Brazil. However, Tether faces ongoing scrutiny from regulatory authorities.
This article was originally published on Crypto City.