Tether CEO Explains Why Bitcoin Is The Most Beautiful Currency In The World (Token2049 Dubai Interview)

In a recent interview with CryptoPotato at the 2024 Token2049 Dubai conference, Tether CEO Paolo Arduino talked about AI, the Bitcoin halving, the recently launched ETFs, USDT market share and more.

Arduino, the CTO of BitFinex, believes that stablecoins like USDT are made for unbanked countries, not developed countries like the US.

Bitcoin ETF / Half Effect

The interview took place a few hours before the fourth quarter (which is early April 20) and the CEO of Tether agreed that the impact of the event is gradually diminishing in previous reviews by CryptoQuant.

The reason for this is that more than 19.5 million BTC have been mined, and the decrease in block production now has less impact than when it was reduced from 50 BTC to 25 BTC.

He also pointed out that the halving is a well-known event that people see coming and are already preparing for it. As a result, he asserts that a halving is likely, especially since Bitcoin is currently at an all-time high.

However, Arduino sees the launch of ETFs in the US in January this year as a huge development in the cryptocurrency space. According to BlackRock CEO Larry Fink, retail investors are currently pouring their money into ETFs, and the institutions have yet to enter the space.

Arduino says that even 1-2% of large traditional hedge funds and other institutions can make a more significant price increase for BTC. He added that it has made it very easy for retail investors in the States who lack the knowledge, interest or confidence to buy bitcoins from crypto exchanges to accumulate assets.

Although he agrees that ETFs make it easier for people to start their bitcoin journey, he notes that these products have a somewhat negative impact. When people buy shares of spot ETFs, they do the opposite of what Maxis believes: bitcoin HODLers must store their own assets outside of centralized entities.

However, all that could change if newbies use ETFs as an entry point and start educating themselves on the real benefits of the world's largest cryptocurrency instead of just thinking about making a quick profit.

“Most people still think in terms of Euros and US Dollars. So instead of holding the most beautiful money in the world, you want to make a profit on that side.

Tether competition and the impact of ETFs

Arduino has denied earlier rumors that the approval and launch of the spot Bitcoin ETF would reduce interest in USDT and other stablecoins. Conversely, USDT's market cap has increased by about $20 billion since January and is now around $110 billion, he said.

Trading volumes on Bitfinex, which caters mostly to institutional investors, have also grown significantly within 6 to 12 months of ETFs going live.

Competition for Tether stablecoins, especially the rapid growth of the recently launched EthenaUSD, says that a state coin industry cannot exist if they are the only players in it.

He believes that competition is good, but because people are not equal, they should know the difference between all stable coins.

While many newly launched stablecoins are headed for DeFi, Tether's goals are different:

“Teter doesn't care about DeFi. Tether is used in DeFi, but certainly not our primary use case. We believe our primary use case is emerging markets in developing countries, where people need access to dollars and have been left behind by the traditional financial system.

AI and the future

Tether has been on the move with a few AI-related initiatives over the past several months, and Arduino says this trend is likely to strengthen in the future. He explained that the company will only use its profits to invest in AI projects.

For example, Tether has made $6 billion by 2023 and has used about 10% of that to allocate to various AI investments. At the same time, the remaining $ 5.4 billion was used to further strengthen the stablecoin reserves, something that the firm had previously criticized.

Most recently, Tether expanded its two largest stablecoins to TON's blockchain, and there is over $30 million on the network.