Tether CEO Explains Why Bitcoin Is the Most Beautiful Currency in the World (Token2049 Dubai Interview)

in a recent interview crypto potato During the 2024 Token2049 Dubai Conference, Tether CEO Paolo Ardoino spoke about AI, Bitcoin halving, recently launched ETFs, USDT market share, and more.

Ardoino, who is also CTO of BitFinex, believes that stablecoins such as USDT were created for people without bank accounts, and not for developed countries like the United States. There is.

Bitcoin ETF/Impact of halving

This interview took place just hours before the fourth halving (in the early hours of April 20th), with Tether’s CEO saying that the impact of the halving will fade over time. Agreed with previous reviews.

This is because over 19.5 million BTC has already been mined and the reduction in block production has a smaller impact than when it was cut from 50 BTC to 25 BTC.

He further pointed out that the halving is a known event that people expect to come and are preparing for it in advance. As a result, he argued that the halving is likely already priced in, especially given the fact that Bitcoin soared to an all-time high this time ahead of the halving.

However, Ardoino sees spot ETFs, which were launched in the US in January of this year, as the most bullish development within the crypto ecosystem. BlackRock CEO Larry Fink said that for now, retail investors are primarily pouring money into ETFs, and financial institutions have yet to jump in.

Ardoino said that even a 1-2% increase from large traditional hedge funds and other institutions could drive even more significant price increases for BTC. He added that U.S. spot ETFs have made it easier for retail investors who previously lacked the knowledge, interest, and trust to purchase Bitcoin from crypto exchanges to accumulate assets.

While he agreed that ETFs make it easier for people to start their Bitcoin journey, he also noted that these products have some negative implications. When people buy shares in spot ETFs, they are doing the opposite of what Maxis believes, which is that Bitcoin HODLers should store their assets outside of a centralized organization. I will take the following actions.

But all that could change if beginners start learning about the real benefits of the world’s largest cryptocurrency, instead of using ETFs as an entry point and just aiming for quick profits.

“The vast majority of people still think of US dollar translation in euro terms. So they just want to profit on that front, rather than holding onto the world’s most beautiful currency.”

Paolo Ardoino.Source: Finnear

Tether competition and the impact of ETFs

Ardoino refuted earlier rumors that the approval and launch of the Spot Bitcoin ETF would reduce interest in USDT and other stablecoins. Just the opposite, he said, USDT’s market capitalization has soared by about $20 billion since January and now stands at about $110 billion.

Trading volumes at Bitfinex, a cryptocurrency exchange that primarily serves institutional investors, have also increased significantly over the past six to 12 months since the launch of the ETF.

Regarding the recent rise and rapid growth of Tether’s stablecoin competition, particularly Athena’s USDe, the executive said the stablecoin industry could not exist if they were the only players.

He believes competition is a good thing, but all stablecoins are not created equal and people need to understand the differences between them.

While many newly launched stablecoins are aimed at DeFi, Tether’s goals are different.

“Tether doesn’t care about DeFi. Tether is used in DeFi, but that’s certainly not our primary use case. Our primary use case is We think of emerging markets, people who need access to dollars and are left behind by the traditional financial system.”

AI and the future

Tether has already dabbled in some AI-related efforts in the past few months, and Ardoino said this trend is likely to intensify. He explained that the company only uses profits to invest in AI projects.

For example, Tether made $6 billion in 2023 and allocated about 10% of it to various AI investments. At the same time, the remaining $5.4 billion was used to further strengthen stablecoin reserves, which the company has been criticized for in the past.

Most recently, Tether expanded two of its largest stablecoins to a TON of blockchain, and there are already over 30 million USDT on the network.

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