Decentralized Market for US Debt Created by USDT Stablecoin Adoption in Developing Nations
Paolo Ardoino, CEO of Tether, discussed the impact of USDT stablecoin adoption in developing nations on the creation of a decentralized market for US debt. This effectively positions everyday individuals as indirect purchasers of American treasuries through Tether’s reserves.
Role of USDT in Emerging Markets
Ardoino emphasized the significant role of USDT in maintaining US dollar dominance globally. He also warned about the potential challenge posed by BRICS nations through gold accumulation, which could threaten this supremacy.
- USDT serves as a temporary “bridge” function in emerging markets where people require access to the US dollar for savings.
- BRICS nations are actively seeking their “Deepseek moment” against dollar hegemony, potentially through a gold-backed currency initiative.
Bitcoin as a Replacement for the Dollar
Ardoino expressed his belief that Bitcoin will ultimately replace the dollar. This is why Tether invests profits in Bitcoin infrastructure development.
“In the long term, I don’t believe there is a future for USDT; I expect a financial reset, where all national currencies will collapse and experience hyperinflation. Consequently, USDT will be completely useless, and at that point, I believe the world will only use Bitcoin,” Ardoino said.
BRICS Gold Accumulation and Dollar Hegemony
Recent data supports Ardoino’s concerns about BRICS gold accumulation, with the bloc now holding over 20% of global gold reserves. Central banks globally have maintained strong gold purchasing patterns into 2025, indicating a potential challenge to dollar hegemony.
- Gold prices have surged in response to sustained demand, with projections suggesting further increases.
- A potential BRICS gold-backed currency could impact the value of the dollar compared to the weight of gold.
Global Expansion of USDT
Tether continues to expand its global footprint, surpassing 400 million users worldwide. The growth is particularly notable in developing regions with limited banking access, where USDT provides an alternative financial infrastructure.
- USDT plays a crucial role in supporting dollar dominance and providing essential financial services to underbanked populations.
- Ardoino predicts a shift towards a Bitcoin-dominated financial system in the long term following the collapse of fiat currencies.
