Key takeaways
- Tether’s new gold-backed digital asset aims to boost users’ trust in blockchain technology.
- Tether CEO sees US elections as crucial for the future of the crypto industry.
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One reason Tether chose gold to back its new synthetic dollar, aUSDT, is its relative stability compared to Bitcoin, Tether CEO Paolo Ardoino said in a recent interview with Bloomberg.
“Gold is probably the best asset to do this because it is much less volatile than Bitcoin. We have bet on Bitcoin, but gold is probably a better choice in the short term,” Ardoino explained.
Launched in June, aUSDT is over-collateralized by Tether Gold (XAUT) and is part of Tether’s new Alloy by Tether platform, which is designed for the creation of various pegged assets.
With the synthetic dollar, Tether seeks to increase trust and transparency within the cryptocurrency market. Paolo believes that backing a digital asset with a tangible commodity like gold will instill more confidence in users.
“It’s very important for us to look for new ways to give trust to our user base and also to prove blockchain-based technology,” Ardoino said. “So until 1971, the US dollar was backed by gold.”
Additionally, there is demand for alternative options to Tether’s USDT stablecoin, especially in countries experiencing economic instability, according to Ardoino. He noted that the new currency is meant to offer a more stable and transparent option.
“We also see the opportunity to provide an opportunity for others who want to see more transparent support for our synthetic dollar,” Ardoino added.
The introduction of aUSDT came ahead of the upcoming US presidential election, which Tether CEO says will have a huge impact on the crypto industry.
“I think the election is going to be very important for the cryptocurrency industry. We’ve seen all the candidates look at the current state of support for cryptocurrencies in the United States,” he said.
Commenting on the regulatory environment surrounding US crypto companies, Ardoino pointed out that the country has not always been supportive of crypto.
“I have to say that the cryptocurrency industry in the United States has not been very well supported so far. We have seen actions against very significant companies,” he said.
“I have always considered the United States to be the country that predominates in innovation… the country that brings all the technological innovations,” Ardoino added. “And it is strange that the United States does not seize the same opportunity to become the leader of one of the most revolutionary technologies in the world.”
Asked about the importance of regulatory reform, such as that proposed by Donald Trump, or the implementation of safeguards or rules, such as Kamala Harris’ plan, Ardoino said that innovation and government regulation must go hand in hand. He believes that good regulations can create a stable and safe environment for industry to thrive.
“I think it’s very important to combine the two. You need regulations, good regulations that support these powerful technologies,” Ardoino said.
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