Billionaire has a shocking strategy against BRICS’ de-dollarization
Paolo Ardoino, the billionaire CEO of the crypto company Tether, thinks that stablecoins are the ultimate tools to push back against the de-dollarization efforts of the BRICS countries.
In every country Tether is offering its USDT stablecoin, it is encouraging the adoption of the U.S. dollar, he said.
A stablecoin is nothing but a type of cryptocurrency that attempts to stabilize its value, unlike traditionally volatile cryptocurrencies such as Bitcoin. It is pegged to a traditional currency like the USD or a commodity like gold. USDT, for example, is pegged 1:1 to the dollar.
With President Donald Trump signing the GENIUS Act that deals with stablecoin regulation, the market that is worth $265.6 billion is expected to expand even further. Tether, which offers the largest stablecoin in the world, is betting big on its future after this development.
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As reported earlier, the GENIUS Act is also a potential attempt on the part of the Trump administration to counter de-dollarization trends in emerging markets.
Among such markets is BRICS — a group of countries comprising Brazil, Russia, India, China, and South Africa — that Trump has repeatedly threatened imposing 100% tariffs against if the countries pursue a de-dollarization agenda. Notably, BRICS has steadily been reducing its reliance on the USD and amassing gold over the years.
Ardoino, who was present at the White House when the president signed the stablecoin legislation, recently talked about the role of stablecoins to counter such trends, among other subjects, on the "Mornings with Maria" program on Fox Business.
Stablecoins are the tools for the USD's hegemony and expansion and challenge the de-dollarization efforts by BRICS countries, he explained in a conversation with the host Maria Bartiromo.
Stablecoins increase demand for U.S. Treasuries
Not only that, but when Bartiromo asked him if the current situation allows for increasing demand for U.S. Treasuries, Ardoino confirmed that.
The Tether CEO explained that in countries facing high inflation, USDT is giving access to those looking for shelter in the USD. The push for stablecoins will create a demand for the USD as the world's reserve currency, and this, in turn, will create an incredible demand for the U.S. Treasuries that have recently been dumped by China and Japan, he expanded upon the potential future trends.
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Tether itself holds more than $130 billion in U.S. Treasuries — even more than countries like Germany, he added.
Since the GENIUS Act requires stricter compliance, Tether is soon going to announce a U.S. domestic stablecoin that will compete in the domestic market in the U.S., Ardoino underlined.