Tether CEO Paolo Ardoino recently discussed the rationale behind selecting gold as the collateral for their new synthetic currency, aUSDT, in a recent interview with Bloomberg.
Gold is a more appropriate asset for short-term backing due to its relative stability in comparison to Bitcoin, as he emphasized. Ardoino stated that gold is the superior choice for this initiative due to its reduced volatility, despite the fact that Bitcoin has its advantages.
In June, aUSDT was introduced as a component of Tether’s new platform, Alloy by Tether, which is dedicated to the development of tethered assets. It is over-collateralized by Tether Gold (XAUT). The objective of aUSDT is to increase transparency and confidence in the crypto market by associating a digital asset with a tangible commodity, such as gold. Ardoino is of the opinion that this method will increase user confidence.
Ardoino also identified the increasing necessity for alternatives to Tether’s USDT stablecoin, particularly in regions that are grappling with economic challenges. It is the goal of the new synthetic dollar to provide a more transparent and stable alternative for users who are in search of a dependable digital currency.
Additionally, he addressed the forthcoming US presidential election, anticipating its substantial impact on the crypto industry. Ardoino contends that the voting results could significantly influence the regulatory environment for cryptocurrencies in the United States.
Ardoino acknowledged that the United States has not consistently been supportive of the crypto sector, citing actions against prominent companies, when discussing the regulatory environment. He expressed astonishment that the United States, which is renowned for its technological innovation, is not completely embracing the potential of blockchain technology.
Ardoino underscored the significance of both when asked about the balance between innovation and regulation. He maintains that the establishment of effective regulations can foster a secure environment in which technologies such as blockchain can flourish.
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