- Over 300 million people globally use USDT as a digital currency in emerging markets.
- Tether is among the top three global purchasers of short-term US Treasury Bills.
Paolo Ardoino, CEO of Tether, just underlined how important USDT is to boosting demand for the US dollar in emerging nations.
In response to a story that said dollar-backed stablecoins support US public debt demand, Ardoino highlighted the widespread use of USDT, stating that more than 300 million people use it as a virtual currency worldwide.
"Stablecoins backed by dollars provide demand for U.S. public debt"$USDt is being used by more than 300M people across the world as the digital dollar, providing a lifeline utility to entire communities in developing countries.
These people are underserved by the banking…— Paolo Ardoino 🤖🍐 (@paoloardoino) June 14, 2024
Financial Inclusion and Efficiency
Money transfers and storage are made more efficient by USDT, which provides vital financial services to underdeveloped populations. It gets over established banking structures, which frequently leave out the underbanked.
“Over 300 million individuals worldwide utilize the USDT as their digital currency, giving entire underdeveloped areas a vital resource.” Ardoino added:
“These people are underserved by the banking industry, mostly remaining unbanked and subject to high inflation and fast devaluation of their national currencies.”
Global Financial System Impact
Tether would be above countries like Indonesia, Pakistan, and Nigeria if it were a country. This strong adoption of USDT has a significant impact on the global financial system.
Ardoino pointed out that Tether is one of the top 20 overall buyers and one of the top three worldwide buyers of short-term US Treasury bills.
This shows how Tether is becoming more and more influential in the financial industry and how virtual assets are being integrated with conventional financial institutions.
Tether’s Financial Holdings
Tether reported holding about $90.87 billion in US Treasury securities as of March 31, 2024, in its Q1 attestation report.
Among these holdings are both direct and indirect ownership of US Treasury securities; the latter is represented via overnight reverse-repurchase agreements. By using money market funds, the company also makes direct investments in US Treasury securities.
At more than $112 billion in market value, Tether’s USDT is the most popular stablecoin in the sector. CoinMarketCap reports that, even more than Bitcoin, digital assets dominate the market with almost 70% of the trading volume.
Furthermore, chain analysis research reveals a consistent increase in the world market for stablecoins like USDT in developing nations like Nigeria, Turkey, Thailand, and Brazil. Though it rules, Tether is constantly under regulatory inspection.
Decentralization and Bitcoin
Before, ETHNews reported that Ardoino’s focus was on Bitcoin’s special decentralized character among more than 14,000 cryptocurrencies. This feature highlights even more how unique Tether is and how it benefits the financial sector.
Recently, Ripple CEO Brad Garlinghouse made the baseless suggestion that the US government would target the asset.