How does Stable Coin USDT work? Tether CEO Ardoino shares how digital dollars change the global financial game rules.

Tether CEO Paolo Ardoino, the issuer of Stable Coin, shared the journey of Tether and its goals and challenges for the next decade in an interview on 12/27. Ardoino also explained in a simple and easy-to-understand way how Stable Coin affects the global economy, especially its application in emerging markets.

The Birth and Vision of Tether

Tether was born in 2014, with the original intention of combining blockchain technology with the world's largest reserve stablecoin, the US dollar (USD), to create a new type of digital coin. Ardoino stated that Tether is like the blockchain version of PayPal, enabling cross-border fund circulation to become fast, convenient, and more secure through blockchain technology.

Users depositing fiat coin into Tether's bank account, Tether will invest these funds in low-risk assets such as short-term US bonds, and issue a Stable Coin USDT equivalent to the US dollar. Users can trade and pay with USDT, and exchange USDT for fiat coin when needed. Ardoino said USDT has become the digital currency choice for about 400 million people worldwide.

Tether invests these funds in low-risk assets such as short-term US Treasury bonds and issues USDT (Stable Coin) of equivalent value. Users can trade, make payments, and convert USDT back to fiat coin when needed. Tether has become the digital coin of choice for around 400 million people worldwide, with 35 million new digital wallets created every quarter.

2017 was a breakthrough year for Tether, followed by countless attacks.

Ardoino said that 2017 was a breakthrough year for Tether. With the rise of the ICO boom, many cryptocurrency exchanges started using USDT as a digital dollar, making transactions more convenient. Initially, many banks were not friendly towards cryptocurrency exchanges, but there was still a large demand in the market to trade various cryptocurrencies with USD as the pricing. In this situation, USDT solved this problem.

Although Tether has become the market's preferred choice, Ardoino said that many competitors emerged after 2017. Tether also faced scrutiny and attacks from the New York Attorney General and market speculators from 2019 to 2021. However, Ardoino stated that Tether has proven the robustness of its asset reserves and has successfully weathered several market stress tests.

USDT is the life-saving straw for inflationary countries and the preferred choice for emerging markets.

Ardoino emphasized that although the United States and Europe have stable financial systems and therefore have low demand for digital dollars such as USDT. But for countries with high inflation and unstable financial systems such as Turkey and Argentina, especially when the local currency coin depreciates by as much as 80%-98%, USDT is like a lifesaver, providing financial stability for the young generation and many families in these countries.

Ardoino added that about 3 billion people worldwide cannot access traditional financial services because they are excluded from the banking system due to low income, high fees, and other reasons. Therefore, USDT provides a way to access and save money without the need for traditional financial systems, making it particularly suitable for emerging markets in Africa, South America, and Asia.

Tether's New Goal in the Decentralized Future

Ardoino said that Tether is actively investing in Bitcoin mining and AI, believing that safeguarding the security of the Bitcoin network lies in decentralized mining, which can effectively reduce risks. As for AI, Ardoino believes that the current development mode is too centralized, with most of the data and computing power being monopolized by a few tech giants, so AI must move towards a more privacy-protecting, decentralized development mode in the future.

Ardoino said that Tether currently holds 82,000 bitcoins and 44 tons of gold, and has also developed a peer-to-peer communication protocol called Whole Punch, aiming to create serverless instant messaging and live streaming technology. Ardoino added that Tether not only holds traditional and cryptographic assets as financial backing, but also continues to innovate on the technological front. 'We will be more committed to promoting decentralization and technological innovation in the future, providing users worldwide with more diverse and secure financial services,' Ardoino confidently said.

(Tether: USDT injects new life into high-inflation countries and is the best partner for the US dollar)

This article How does Stable Coin USDT work? Tether CEO Ardoino shares how digital dollars change the global financial game rules first appeared in Chain News ABMedia.