Currently, over 300 million people rely on Tether’s $USDT in the cryptocurrency market. Tether’s CEO, Paolo Ardoino, recently stated in an interview that $USDT has become an important tool for many users as a stablecoin in the global cryptocurrency market. It provides crucial financial services to communities in developing countries. This stablecoin not only enhances the efficiency of fund transfers and storage but also bypasses traditional financial systems that often exclude underserved groups.
Ardoino said, “Over 300 million people use $USDT as a digital dollar, providing a lifeline to the entire community in developing countries. These people are excluded from the banking industry, with most of them still without bank accounts and facing high inflation and rapid devaluation of national currencies.”
This means that if Tether were a country, its population would exceed that of countries like Indonesia, Pakistan, and Nigeria.
Paolo Ardoino: $USDT could become a substitute for the US dollar
Ardoino also stated that the importance of $USDT is increasing globally, especially in unstable economies, and that $USDT could become a substitute for the US dollar. He emphasized that the stability and reliability of $USDT protect investors’ purchasing power in areas 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 and ranks 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, including both direct and indirect holdings. Indirect holdings include 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 to total outstanding Tether tokens
Currently, Tether’s $USDT is the dominant stablecoin in the industry with a market capitalization exceeding $111.2 billion. According to CoinMarketCap’s data, this digital currency occupies approximately 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 continues to face ongoing scrutiny from regulatory authorities.
This article was originally published on Crypto City.
