Important points
Tether’s new gold-backed digital asset aims to increase user trust in blockchain technology. Tether CEO believes the US election is crucial for the future of the crypto industry.
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Tether CEO Paolo Ardoino said in a recent interview with Bloomberg that one of the reasons Tether chose gold to back its new synthetic dollar, USDT, was due to the combination of Bitcoin and He said that it is relatively stable compared to other countries.
“Gold is probably the best asset to make that happen because it has much lower volatility than Bitcoin. We held out on Bitcoin, but in the short term gold is probably the better choice. “Yes,” Ardoino explained.
Introduced in June, USDT is overcollateralized by Tether Gold (XAUT) and is part of Tether’s new Alloy by Tether platform aimed at creating a variety of Tether assets.
Tether seeks to use synthetic dollars to increase trust and transparency in the cryptocurrency market. Ardoino believes that backing digital assets with tangible goods like gold can instill greater confidence in users.
“It is very important for us to research new ways to provide trust to our user base and also prove technology based on blockchain,” Ardoino said. “So until 1971, the U.S. dollar was backed by gold.”
Additionally, Ardoino said there is demand for alternatives to Tether’s USDT stablecoin, especially in economically unstable countries. He pointed out that the new currency aims to provide a more stable and transparent option.
“We also see an opportunity to provide opportunities for others who want to see more transparent backing of our synthetic dollars,” Ardoino added.
The introduction of USDT comes ahead of the upcoming US presidential election, which Tether’s CEO believes will have a huge impact on the crypto industry.
“I think the election is going to be very important for the crypto industry. We’ve seen all the candidates focus on the current state of crypto support in the US,” he said.
Ardoino commented on the regulatory environment surrounding crypto businesses in the US, noting that the country has not always been supportive of cryptocurrencies.
“I have to say that the U.S. crypto industry has not been very well supported to date. We have seen actions against very important companies,” he said.
“I’ve always seen the United States as the dominant country when it comes to innovation in all things, the country that drives innovation in all things,” Ardoino added. “And it feels strange that the United States hasn’t taken advantage of the very same opportunity to lead in one of the most innovative technologies in the world.”
Asked which is more important: regulatory reforms like Donald Trump’s proposals or safeguards and rules like Kamala Harris’ plan, Ardoino said innovation and government regulation need to go hand in hand. He said there is. He believes that proper regulation can create a stable and secure environment for the industry to thrive.
“I think it’s very important to have a combination of both. We need regulations, good regulations, that support these powerful technologies,” Ardoino said.
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