Tether, which operates the world’s largest stablecoin by market capitalization, has reportedly proposed to the Turkish government the creation of a token representing borate minerals.
Tether has asked Turkey to consider implementing blockchain technology to create boron-backed digital tokens, Bloomberg reported on October 24.
A Turkish official said Tether’s boron proposal was not currently viable, but another official at the country’s Energy Ministry reportedly insisted that negotiations with Tether were at an early stage.
The report also suggested that Tether has floated the idea of setting up a digital asset exchange in Istanbul.
Turkey holds more than 70% of the world’s boron supply
Borate minerals are natural compounds primarily used in the production of ceramics, detergents, fertilizers, and glass.
Turkey’s state-run boron supplier Eti Maden Isletmeleri Gener Mudlug estimates that the country holds more than 70% of the world’s boron reserves. The local government reportedly expects boron sales to be around $1.3 billion in 2024.
Top 5 countries in global distribution of boron. Source: Etimaden.gov.tr
Tether’s proposal for a boron-backed digital currency coincides with the cryptocurrency industry’s growing interest in tokenization, which uses blockchain networks to generate representations of real-world assets (RWA).
Tether focuses on crypto innovation in Türkiye
Although Tether did not directly confirm or deny the report to Cointelegraph, CEO Paolo Ardoino emphasized that Tether is deeply committed to innovation amid Turkey’s mass adoption of digital assets. did. he said:
“With Turkey emerging as an important hub for blockchain technology, we are excited to continue to support this momentum and explore new growth opportunities in the region.”
Tether is increasingly committed to the industry in Turkey, with Tether’s local expansion manager Anadolu Aydinli meeting with multiple local government officials in recent months.
In late September, Aydinli met with Turkish Vice President Cevdet Yilmaz to discuss energy and mining regulation.
Tether expansion manager Anadolu Aydinli (left) and Turkish Vice President Cevdet Yilmaz (center). Source: LinkedIn
“Gaining support from senior government officials is always a valuable milestone as we continue our efforts to create a fertile environment for our country’s growth,” Aydinli said.
In August, Aydinli also met with Turkish Energy Minister Alparslan Bayraktar to discuss investments in Turkey’s energy sector.
In July 2024, Tether signed an agreement with a local cryptocurrency company to evaluate the development of a program to introduce private and public stakeholders in Turkey.
Turkey is one of the largest stablecoin markets
Tether’s active involvement in cryptocurrency adoption in Turkey is in line with Ardoino’s statement that Turkey is one of the world’s largest jurisdictions in terms of stablecoin demand.
He noted that people in countries like Turkey want to hold a digital version of the dollar to protect against local currency fluctuations and inflation.
“We have to focus where it is needed most,” Ardoino told Cointelegraph in early October.
Related: US is ‘dropping the ball’ on cryptocurrencies, but that should change soon — Tether CEO
According to blockchain information firm Chainalysis, Turkey had the highest stablecoin purchases as a percentage of gross domestic product (GDP) from April 2023 to March 2024.
According to Chainalysis data, stablecoin purchases in Turkey account for 4.3% of GDP, making it the world’s largest spender on stablecoins as a percentage of GDP.
Magazine: Michael Heinrich loves AI coins Goat, Turbo, Aethir…but not TAO: Hall of Flame
