Cryptocurrency NewsTether CEO Paolo Ardoino Champions USDT's Global Role Against Inflation and Outlines...

Tether CEO Paolo Ardoino Champions USDT’s Global Role Against Inflation and Outlines Growth

Former CTO and current CEO of Tether, Paolo Ardoino, recently spotlighted the substantial profits of the foremost stablecoin project and stressed the worldwide adoption of USDT as protection against inflation.

In conversation with the Wolf of All Streets Podcast, Ardoino shared that despite market instability, Tether’s (USDT) circulation has expanded over the last year. The organization backs its currency with its own assets and capital, stemming from investments in US treasuries and short-term holdings managed with due diligence. He disclosed that Tether retains a considerable sum of $72.6 billion in US treasury bills.

Ardoino underlined Tether’s commitment to upholding a stablecoin pegged at parity with the US dollar. In the final quarter of 2022, Tether realized a profit of $700 million. Despite close scrutiny from the public eye, Tether has navigated through various crises and major bankruptcies within the web3 domain, cooperating actively with law enforcement, including the Department of Justice, according to Ardoino.

He reaffirmed the company’s dedication to offering a stablecoin that mirrors the US dollar one-to-one, without any current intentions for an initial public offering.

Ardoino pointed out that over the preceding year, Tether’s USDT saw a rise in distribution, countering the volatility experienced by other digital currencies and stablecoins. Even in a bearish market, USDT’s market capitalization remains over $85 billion, ranking it the third-largest cryptocurrency globally. The recent financial success has prompted Tether to contemplate diversification strategies.

The company is also aspiring to evolve into an all-encompassing tech provider, which requires expertise in key sectors such as energy, communication, and financial infrastructure, as he disclosed.

Amid the recent buzz around stablecoins in the crypto sphere, Brian Brooks of Valor Capital Group, formerly Acting Comptroller of the Currency and CEO of Binance U.S., noted that stablecoins could reestablish the significance of the U.S. dollar in emerging markets.

On the legislative front, July 27 marked a stride forward as the U.S. House Financial Services Committee progressed a bill to set up a federal regulatory framework for stablecoins, typically pegged to traditional assets like the U.S. dollar.

This proposed law delegates to the Federal Reserve the task of stipulating stablecoin issuance conditions, while preserving state regulatory authorities’ powers. The bill underwent revisions earlier to alleviate concerns from some democrats about stablecoin issuers potentially skirting stringent regulations by operating under state jurisdictions.

Meanwhile, the conviction of ex-crypto mogul Sam Bankman-Fried, implicated in misappropriating over $10 billion from clients and investors, underscores yet another disturbing episode in the crypto industry. Despite such incidents, there seems to be little momentum towards enacting clear regulatory standards.

Last year, amidst significant downturns in cryptocurrencies and a wave of bankruptcies, U.S. Congress looked into regulating the sector. However, these efforts have moved slowly, especially given the current year’s challenges like global tensions, inflation, and the looming 2024 election.

President Biden issued an executive order on cryptocurrency oversight, directing the Fed to explore the possibility of establishing a digital currency.


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