“USDT doesn’t need gimmicks or yield promises,” says Tether CEO

Last week, Tether Limited released a new report on its reserves. According to the company, stablecoin USDT has bolstered its reserves of safer bonds. That is, it acquired more US government bonds.

Shortly before the release of the report, Tether’s chief technology officer, Paolo Ardoino, gave an exclusive interview to CriptoFácil. In this interview, the CEO talked about several topics, including the future of currency reserves.

Ardoino also takes the opportunity to talk about the stablecoin UST, whose collapse occurred before the questions were sent. However, the CEO did not fail to issue a controversial opinion regarding the Earth stablecoin.

growing audits

In the interview, Ardoino exposed the breakdown of stablecoin reserves. In the words of the director, Tether is constantly improving its audit mechanisms.

After the agreement with the New York attorney’s office, we show the details of the reservations. No other stablecoin at the time did anything similar; we were the first. Therefore, no other stablecoin has had an audit. After that, we went a step further and revealed all the risk grades of the assets in our portfolio,” said Ardoino.

According to the latest report, 83% of USDT’s backing is made up of cash, including commercial papers. However, the company has been actively working to reduce exposure to lower risk securities. However, the company still receives criticism for the lack of greater transparency regarding its balance sheet.

But Ardoino takes the reviews as positive, as they help in the process of improving the stablecoin. Quarterly certificates are an example of this process.

“As a leader in the growing cryptocurrency industry, we remain committed to being the most transparent stablecoin. Our quarterly safety certificates are a true reflection of our commitment.”

USDT needs no gimmicks or income

As the name suggests, stablecoins are cryptocurrencies with a stable price that achieve price stability when backed by reserve assets. At the time of the interview, UST had reached third place among the largest stablecoins, with many seeing enormous value in its proposal.

Such a perception increased after the cryptocurrency began to include Bitcoin (BTC) in its reserves. However, none of these precautions served to protect the UST, which lost its parity in a matter of days.

Ardoino did not speak specifically about the UST collapse, but was asked about the inclusion of BTC in Tether’s reserves. In response, the CEO took the opportunity to criticize the then rival’s model.

“If you look at Tether volumes compared to the rest of the stables, they are incredibly high. They are up to ten times louder, even on a bad day. With no expensive marketing gimmicks or high-yield promises, Tether has gained traction among users because it is easy to use and useful for many things in the market. Having the dollar as support makes people prefer our stablecoin over others,” the CEO said.

In the executive’s view, the preference for USDT is due to the fact that its proposal is simple. In short, stablecoin is a dollar on a blockchain. And in weaker currency countries, people tend to use the dollar as a store of value.

Therefore, USDT has the same properties as the dollar, but is used anywhere in the world. “An Argentine who prefers to use dollars instead of pesos can use the dollar in cash in their bank or they can use USDT,” he explained.

Membership in other locations

Because of USDT’s global reach, the stablecoin was chosen as one of the official currencies adopted by the city of Lugano, Switzerland. In addition, Bitcoin (BTC) and a local stablecoin (LVGA) have gained legal currency status.

In this sense, Ardoino praised the decision of the city as a whole, which saw the potential for using stablecoins.

“Lugano is a city with one of the biggest financial areas in Switzerland. Fortunately, they understood that it would be crazy not to take advantage of the opportunity that cryptocurrencies now offer. It is an excellent opportunity for the cryptocurrency world to gain the trust of users. Stables issued by private companies will continue to grow”, he concludes.

Also read: See how to earn free tokens

Read also: Analyst points out where the price of Ethereum is going

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