Tether CEO Paolo Ardoino: Multiple Countries' Economies Depend on USDT, Financial Inclusion Mission is More Important
Tether CEO Paolo Ardoino stated that several developing countries' economies are heavily reliant on USDT for domestic and foreign trade. He pointed out that in today's environment, Tether's financial inclusion mission is more important than ever. Reports mention markets such as Venezuela, Argentina, Bolivia, and Turkey, where locals use USDT as a digital dollar, a value preservation tool, and a means of trade settlement due to inflation, currency devaluation, and limited access to dollars. Tether claims its products have served over 570 million users.
Market mechanisms indicate that event-driven demand for stablecoins in emerging markets continues. Funds flow into USDT and Tether's reserve assets, benefiting Tether and the dollar stablecoin ecosystem, while traditional currencies with high inflation and traditional cross-border payment channels are under pressure. The penetration of USDT in physical manufacturing and trade reinforces its status as a parallel dollar.
Source: Public Information
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Ardoino has long positioned Tether as financial infrastructure for emerging markets rather than merely a crypto trading tool. The use of USDT in scenarios such as import-export settlements in Venezuela, P2P in Argentina, and inflation resistance in Turkey reflects the stablecoin's role in filling the gap left by traditional banks and cash in dollars.
In terms of capital pathways, Tether supports issuance through large holdings of government bonds and excess reserves, converting the dollar demand from developing countries into its own balance sheet expansion. A similar historical phenomenon can be seen in the informal circulation of dollars in Latin America, but blockchain reduces physical and intermediary costs. Currently, stablecoins are in a phase of extending from a medium of exchange to tools for daily settlement and savings.
Analogous to the dollarization phenomenon during high inflation periods in South Africa's rand or Turkey's lira, USDT provides a programmable and instantly cross-border alternative.
Essentially, this is about technological substitution and the transfer of pricing power. The mechanism is that when local currency credit weakens, low-friction digital dollars become the default unit of accounting and settlement, driving the migration of value storage and trade settlement from sovereign currencies to supranational stablecoins.
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- The weaker the local currency, the stronger the digital dollar.
- The true entry point for financial inclusion is often stablecoins rather than bank accounts.
- The currency used for trade settlement grants invisible pricing power.