The current cryptocurrency market has over 300 million people relying on Tether’s $USDT. Tether’s CEO, Paolo Ardoino, recently stated in an interview that over 300 million people globally use $USDT as a digital dollar, providing important financial services to communities in developing countries. This stablecoin not only improves the efficiency of fund transfers and storage but also bypasses traditional financial systems, which 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 individuals 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 surpass countries like Indonesia, Pakistan, and Nigeria.
Paolo Ardoino: $USDT could become a substitute for the US dollar
Ardoino also mentioned that the importance of $USDT is increasing globally, particularly in unstable economies, where $USDT could become a substitute for the US dollar. He emphasized that the stability and reliability of $USDT allow it to protect investors’ purchasing power in regions with severe inflation and currency devaluation.
He pointed out that Tether is one of the top three buyers of short-term US government 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 government bonds, including both direct and indirect holdings. The indirect holdings include overnight repurchase agreements collateralized by US government bonds. The company also invests directly in US government bonds through money market funds.
Percentage of US government bonds, cash, and cash equivalents to outstanding Tether tokens
Currently, Tether’s $USDT is the dominant stablecoin in the industry with a market capitalization of over $111.2 billion. According to CoinMarketCap’s data, this digital asset occupies around 70% of the market and is the most traded cryptocurrency, even surpassing 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 faces ongoing scrutiny from regulatory authorities.
This article was originally published on Crypto City.