300 million users see USDT as digital dollar: Tether CEO

Tether CEO Paolo Arduino recently emphasized USDT's significant role in fueling demand for the US dollar in emerging markets.

Arduino's comments were in response to an article suggesting that a stable coin backed by the dollar would contribute to the demand for US public debt.

More than 300 million people use USDT

Arduino says more than 300 million people worldwide use USDT as a digital dollar, providing essential financial services to communities in developing countries. This stablecoin improves the efficiency of money transfers and storage, bypassing traditional financial systems and removing many of the underbanked.

“USDT is used as a digital dollar by more than 300 million people worldwide, providing a lifeline to communities in developing countries. These people are underserved by the banking industry, remain largely unbanked, and are vulnerable to high inflation and the rapid destruction of their national currency,” Arduino wrote.

This means that if Tether were to become a country, it would be ahead of countries like Indonesia, Pakistan and Nigeria. Therefore, the high adoption of USDT will have a significant impact on the global financial system.

Arduino cited Tether as one of the top three global buyers of short-term US Treasury bills and ranked among the top 20 overall buyers. This reflects Tether's growing influence in finance and the integration of virtual assets into traditional financial systems.

Read more: 9 Best Crypto Wallets to Store Tether (USDT)

According to Tether's Q1 confirmation report, the company As of March 31, 2024, it held approximately $90.87 billion in U.S. Treasuries. These holdings include direct and indirect holdings of U.S. Treasuries, as well as indirect exposure to overnight reverse repurchase agreements backed by U.S. Treasuries. The company invests directly in US Treasuries through money market funds.

Tether's USDT is the most stable coin in the industry, with a market capitalization of over $1112 billion. According to CoinMarketCap, the digital asset controls 70 percent of the market and is the most traded pure cryptocurrency, ahead of Bitcoin.

Additionally, the Chinalysis report shows steady growth in global demand for stablecoins such as USDT in emerging markets such as Nigeria, Turkey, Thailand and Brazil. Despite its dominance, Tether faces consistent regulatory scrutiny.

Ripple CEO Brad Garlinghouse recently suggested that the US government could target the asset – a claim denied by Arduino.