Paolo Ardoino, the CEO of Tether, recently made some bold statements regarding the role of USDT stablecoin adoption in developing nations. He highlighted how this adoption effectively creates a decentralized market for US debt, positioning everyday people as indirect purchasers of American treasuries through Tether’s reserves.
Speaking at the Bitcoin Policy Institute’s Bitcoin for America event, Ardoino emphasized Tether’s significant role in maintaining US dollar dominance globally. He also warned about the potential challenge to this supremacy by BRICS nations through gold accumulation.
Ardoino described USDT as a temporary “bridge” in emerging markets where people need access to the US dollar for savings. He cautioned that BRICS nations are actively seeking their “Deepseek moment” against dollar hegemony, possibly through a gold-backed currency initiative.
Despite these challenges, Ardoino expressed his belief that Bitcoin will ultimately replace the dollar. He mentioned that Tether invests profits in Bitcoin infrastructure development to prepare for this transition.
Recent data supports Ardoino’s concerns about BRICS gold accumulation, with the bloc now holding over 20% of global gold reserves. Central banks, especially in Russia and China, have been increasing their gold reserves, leading to a surge in gold prices.
Jim Rickards outlined how a potential BRICS gold-backed currency could function, highlighting the impact on the dollar’s value compared to the BRICS currency.
Meanwhile, Tether continues to expand its global footprint, with Ardoino noting over 400 million users worldwide. This growth is particularly notable in developing regions with limited banking access, where USDT provides an alternative financial infrastructure.
Despite criticism from competitors, Ardoino maintains that USDT plays a crucial role in supporting dollar dominance and providing essential financial services to underbanked populations. However, he predicts a shift towards a Bitcoin-dominated financial system in the long term, following the inevitable collapse of fiat currencies.
Overall, Ardoino’s insights shed light on the evolving landscape of global finance and the potential impact of cryptocurrencies like USDT and Bitcoin on the future of the financial system.