Tether and VALR Leaders Discuss The Future of Currency
In a Mar. 14 webinar that brought together Paolo Ardoino, CEO of Tether, and Farzam Ehsani, CEO of VALR, along with VALR’s Head of Growth Blake Player, the trio delved into the evolving landscape of global currencies and the pivotal role of stablecoins. Amidst a backdrop of uncertainty surrounding the future of traditional fiat currencies, the discussion offered insightful perspectives on the resilience of the US dollar, the stability of cryptocurrencies, and the innovative approach Tether is adopting to navigate the future.
The Decline of the Dollar and the Stability of Stablecoins
Ehsani kicked off the conversation with a bold assertion about the dwindling days of the US dollar’s dominance, posing a thought-provoking question about the potential instability of current fiat-backed stablecoins. Ardoino’s response was clear: USDT is designed to maintain a connection to the U.S. dollar, even in the face of the currency’s potential decline in buying power.
He then voiced his skepticism about the Euro’s future, placing more faith in the dollar’s resilience compared to other national currencies. However, he did not shy away from acknowledging the alarming rate at which the US is printing money, with around $1 trillion being added to the supply every 100 days.
Despite this, Ardoino pointed out the strong desire for the dollar among populations without access to a stable currency, citing the lackluster reception of Tether EURO as evidence. His solution? The launch of Tether Gold, a stablecoin backed by gold, which he argues is a superior alternative due to its natural finite supply and absence of the “money printing problem.”
Ardoino went on to champion Bitcoin as the “ultimate currency,” praising its immutable design and capped supply which prevents any core group from altering its fundamentals. This endorsement comes against a backdrop of skepticism surrounding USDT’s reserves.
Tether’s Journey and Resilience
Addressing concerns about USDT’s reserves, Ardoino shared Tether’s journey from being the crypto industry’s “black sheep” to proving its durability and reliability. He revealed Tether’s financial health, with $5.2 billion in extra reserves, highlighting the company’s prudent financial management and its ability to withstand significant redemption pressures.
The webinar also covered an incident in 2022 where USDT was targeted in an attempt to destabilize the stablecoin. Ardoino detailed how the company successfully navigated this challenge by redeeming over $20 billion of its reserves in 20 days.
Why Tether Prefers Treasury Bills Over Cash
Finally, Ardoino explained Tether’s cautious approach to banking, emphasizing the decision to hold reserves in U.S. treasury bills instead of cash. This strategy is aimed at mitigating risks associated with bank failures, ensuring liquidity and security for Tether’s assets.
The webinar provided valuable insights into the thoughts and strategies of leading figures in the cryptocurrency world. As the digital currency landscape continues to evolve, discussions like these offer a glimpse into the future of finance, highlighting the challenges and opportunities that lie ahead for stablecoins and cryptocurrencies in both developing and emerging markets.
