Paolo Ardoino, the CEO of Tether, recently underscored the critical importance of USDT in driving up demand for the US dollar in emerging markets.
At a recent conference, he revealed that over 300 million people view USDT as a digital dollar, making it available to millions of people who are unable to access traditional banking services. This financial instrument streamlines money transfers and savings by eliminating inefficiencies inherent in regular banking systems. To many inhabitants of developing countries, however, USDT serves as a bulwark against hyperinflation and devaluation of currency.
Furthermore, Ardoino stressed that Tether significantly influences on global finance through its status as one among largest buyers of US Treasury Bills. As at March 31st 2024, Tether had approximately $90.87 billion worth of such bonds reflecting its strong integration with traditional finance. Such direct and indirect holdings enabled by different kinds of financial instruments illustrate how Tether has positioned itself strategically within the world’s financial system.
Nevertheless, these huge investments into American government securities show that Tether is stable which also strengthens demand for U.S public debt while entangling cryptocurrencies to conventional markets.
With a market capitalization of over $112 billion, USDT controls about 70% stablecoin market and surpasses Bitcoin in trade volumes. For instance it still remains highly demanded in Nigeria Turkey Thailand Brazil despite all sorts if scrutiny from relevant regulating authorities. Moreover this constant growth rate was confirmed by another Chainalysis report showing high global appetite for stablecoins.