In a thought-provoking address at the Cantor Fitzgerald Global Technology Conference, Paolo Ardoino, CEO of Tether, described the company’s USDT stablecoin as a crucial instrument for maintaining the US dollar’s global dominance. Ardoino argued that, beyond just being a tool for crypto enthusiasts, USDT has become a pivotal ally for the US in ensuring the dollar’s continued hegemony in the financial world.
Ardoino pointed to the growing influence of Tether, which now boasts a user base of 400 million people and has seen a 13% increase in its user base over the last quarter. However, it was his comments on the global demand for the US dollar that resonated most with the conference attendees.
“We didn’t create USDT because we’re great marketers,” Ardoino stated. “We created USDT because outside the US, people overwhelmingly prefer holding the dollar over their local currency.” This statement reflects the broader trend of dollarization in many parts of the world, where local currencies are perceived as volatile or unstable.
Tether’s Role in Geopolitics
Tether’s success, according to Ardoino, is intrinsically linked to the US dollar’s presence in international markets. By offering a digital dollar via USDT, Tether has provided a mechanism for individuals in emerging markets to hold and transact in US dollars, even when their local economies are struggling.
Ardoino also highlighted Tether’s significant financial footprint, noting that the company holds $113 billion in US Treasuries, making it the 19th largest holder of US debt. This financial position reinforces Tether’s alignment with US economic policies and its critical role in upholding the US dollar’s dominance.
As global economic dynamics shift, especially with the BRICS nations looking to create a gold-backed currency, Ardoino believes USDT will serve as a bulwark against any potential challenges to the dollar. Through its growth and strategic positioning, Tether is not only reinforcing the US dollar’s global standing but also solidifying its own place as a key player in the future of digital finance.
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