Tether CEO Says USDT Use Is Spreading in Developing Economies as Dollar Substitute
Summary
- Tether CEO Paolo Ardoino said USDT adoption is rising in developing economies including Venezuela, Argentina, Bolivia and Turkey.
- He said weakening local currencies, dollar shortages and limited access to financial services are driving USDT use as a digital dollar and a store of value.
- He emphasized that in Venezuela, Bolivia, Argentina and Turkey, USDT is taking hold in the real economy as a payment and savings tool, with uses ranging from import and export settlements and commercial transactions to P2P trading and an inflation hedge.
Forecast Trend Report by Period
Use of Tether's dollar-pegged stablecoin USDT is expanding across developing economies including Venezuela and Argentina, Wu Blockchain reported.
Tether Chief Executive Officer Paolo Ardoino said on Aug. 23 that USDT adoption is rising in Venezuela, Argentina, Bolivia and Turkey, according to the Aug. 24 report.
Demand is being driven by weakening local currencies, dollar shortages and limited access to financial services, Ardoino said. In those countries, USDT is being used not only for crypto trading, but also as a digital dollar and a store of value.
Its use in the real economy is also growing. In Venezuela, USDT is used to settle import and export payments, while in Bolivia it is used for commercial transactions. In Argentina, it is used for peer-to-peer, or P2P, transactions. In Turkey, it is being used to protect against inflation-driven declines in asset values.
Ardoino added that USDT is taking hold as a payment and savings tool in those markets, serving both domestic and cross-border transactions while helping ease constraints in the traditional financial system.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.