Tether Holdings, the world’s largest stablecoin issuer USDT, has proposed an ambitious plan to the Turkish government. The plan aims to “modernize” the domestic boron market using blockchain technology.
The proposal includes the creation of a digital token backed by borate minerals, a key resource in which Turkey controls more than 70% of the world’s supply.
Proposal details
As Bloomberg reported today, citing individuals familiar with the matter, Tether has proposed to Turkish authorities the idea of tokenizing boron, which is used in a variety of industries, including pottery, fertilizer, and glass production.
In addition to the tokenization proposal, the company has also raised the possibility of establishing a digital asset exchange in Istanbul, Turkey’s financial capital.
Tokenization is a growing trend in the digital asset space where real-world goods and assets are represented by digital tokens on a blockchain.
Bloomberg revealed that proponents argue that tokenization can improve market efficiency, liquidity, and transparency.
Turkey is projected to generate $1.3 billion in boron sales by 2024, and the government may see Tether’s proposal as an opportunity to leverage innovative technology to boost economic growth.
Türkiye’s growing crypto market and Tether’s interest in boron
While the specific benefits of Tether’s offer are still unclear, the company’s interest in Türkiye is not entirely unexpected.
So far, Turkey has emerged as an attractive market for digital assets, especially due to “high inflation and a decline in the value of the Turkish lira,” which has led to increased adoption of cryptocurrencies. Boron, a naturally abundant resource in Turkey, makes it an interesting option for Tether’s tokenization efforts.
Turkey’s state-run mining company Eti Maden Isletmeleri Gener Mudlug controls the country’s boron reserves, and government control of this precious resource makes it an ideal candidate for blockchain-based solutions. There is a possibility that it will happen.
The Turkish government has not yet committed to the proposal, but discussions continue, with key meetings between Tether officials and senior Turkish officials, including Vice President Cevdet Yilmaz and Energy Minister Alparslan Bayraktar. are.
Turkish government officials said the idea is still in its early stages and may not be implemented immediately. Additionally, a representative from Turkey’s Ministry of Energy confirmed that discussions with Tether are ongoing, although specific plans have not yet been confirmed.
Meanwhile, Tether CEO Paolo Ardoino reaffirmed the company’s commitment to supporting innovation in Turkey’s digital asset ecosystem in a statement. Ardoino pointed out:
(Tether) is deeply committed to fostering innovation in Turkey’s digital asset landscape and is keen to continue exploring new growth opportunities.
USDT market capitalization on 1-day chart. Source: Cryptocurrency TOTAL Market Capitalization on TradingView.com
Featured images created with DALL-E, TradingView charts
