Tether, the world’s largest stablecoin issuer, sees itself as a facilitator rather than a competitor to traditional banks, according to Paolo Ardoino, the company’s CTO. In a recent interview on The Wolf Of All Streets podcast, Ardoino emphasized that Tether’s focus is on serving the unbanked population rather than disrupting the banking industry.
Ardoino stated that Tether’s holdings of US treasuries, currently valued at over $60 billion, do not pose a threat to traditional banks. He explained that Tether’s target market consists of individuals in regions with poor banking infrastructure, where a significant portion of the population does not have access to basic banking services. According to Ardoino, this is where Tether thrives, as it provides an alternative means of transacting and storing value.
While acknowledging the robust financial and banking infrastructures in Europe and the US, Ardoino highlighted the existence of regions where banking services are inaccessible to a large percentage of the population. These individuals are often forgotten or deemed uninteresting to the traditional banking infrastructure. Ardoino believes that Tether plays a crucial role in providing financial inclusion for these underserved communities.
Contrary to being a competitor, Ardoino argued that Tether’s presence in the market actually creates more value for the US dollar. He stated that Tether does not aim to steal jobs or fees from traditional banks, but rather to address an important market for the US economy. By providing a stablecoin that operates on the Ethereum blockchain and is backed by US dollars, Tether offers an efficient and accessible alternative to traditional banking services for the unbanked.
Tether’s commitment to financial inclusion aligns with its mission to provide a stable and trusted digital currency that can be used for everyday transactions. The stablecoin has gained popularity due to its ability to maintain a 1:1 ratio with the US dollar, providing stability within the volatile cryptocurrency market. This stability has made Tether a popular choice for individuals and businesses looking to transact and store value without being exposed to the volatility typically associated with cryptocurrencies.
As Tether continues to expand its presence in the market, it remains focused on its core mission of serving the unbanked population. The company’s emphasis on transparency and accountability, regularly providing audits of its reserves, has helped build trust among its users. By ensuring that every Tether token is backed by an equivalent amount of US dollars, Tether aims to provide a reliable and secure stablecoin solution for individuals who lack access to traditional banking services.
In conclusion, Tether’s CTO Paolo Ardoino stresses that the company does not view itself as a competitor to traditional banks. Instead, Tether aims to provide financial inclusion for the unbanked population, particularly in regions with poor banking infrastructure. By offering a stablecoin backed by US treasuries, Tether seeks to create value for the US dollar and provide a reliable and accessible alternative to traditional banking services. As Tether continues to grow, its commitment to transparency and accountability will remain key in building trust within the crypto community and beyond.
