In a recent discussion with Bloomberg, Tether CEO Paolo Ardoino highlighted the rationale behind choosing gold as the collateral for their new synthetic dollar, aUSDT.
He emphasized gold’s relative stability compared to Bitcoin, making it a more suitable asset for short-term backing. Ardoino remarked that while Bitcoin has its merits, gold’s lower volatility makes it the better option for this initiative.
Launched in June, aUSDT is over-collateralized by Tether Gold (XAUT) and is a part of Tether’s new platform, Alloy by Tether, which focuses on creating tethered assets. The aim of aUSDT is to bolster transparency and confidence in the crypto market by linking a digital asset to a tangible commodity like gold. Ardoino believes this approach will enhance trust among users.
Ardoino also pointed out the growing need for alternatives to Tether’s USDT stablecoin, especially in regions facing economic challenges. The new synthetic dollar is intended to offer a more stable and transparent option for users seeking a reliable digital currency.
He also touched on the upcoming US presidential election, predicting its significant influence on the crypto industry. According to Ardoino, the election outcome could shape the regulatory landscape for cryptocurrencies in the United States.
Addressing the regulatory environment, Ardoino noted that the US has not always been supportive of the crypto sector, mentioning actions against prominent companies. He expressed surprise that the US, known for leading technological innovation, is not fully embracing the potential of blockchain technology.
When asked about balancing innovation with regulation, Ardoino emphasized the importance of both. He believes that good regulations can create a secure environment where powerful technologies like blockchain can thrive.
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