Tether Values Propositions by Empowering the Unbanked and Complementing Traditional Banking

The chief technology officer of Tether, the largest stablecoin issuer, Paolo Ardoino, recently discussed Tether’s partnership with conventional banks in an interview on the podcast The Wolf Of All Streets. Despite having substantial holdings of US treasuries, Ardoino highlighted that Tether does not see itself as a rival to financial institutions. Instead, Tether targets the unbanked people and caters to a certain clientele.

Tether’s Focus on the Unbanked

The majority of Tether’s target market, according to Ardoino, consists of those without access to financial institutions. Due to established financial infrastructures, many individuals have bank accounts in Europe and the US, but this is not the case everywhere in the globe. He said, “We are like 60 and something billion in US treasuries and when I explain our portfolio composition, I also explain that we are not here to try to steal the work from the banks in Europe or in the US.”

Different Market, Different Role

Tether avoids competition from the US and European banking sectors by focusing on the unbanked. Ardoino emphasized that Tether’s goal is not to damage the current financial system. Instead, the business concentrates on areas where the conventional banking system is unable to reach or take into account the wants of the populace. The presence of Tether in these places enhances rather than undermines the work of banks.“There are places in the world where 70% of the people don’t have a bank account because the banking infrastructure is poor. They are forgotten or not interesting to the banking infrastructure. That is where we thrive so in a way, we are not competing with the US and European banking industry.”

Creating Value for the US Dollar

Tether contends that, contrary to popular belief, it is really enhancing the relevance and value of the US dollar. Ardoino emphasized that Tether’s operations do not lead to employment losses or a decrease in bank fees. The stablecoin issuer, on the other hand, targets a significant market sector with importance to the US economy. Tether indirectly improves the status of the US dollar on the world stage by enabling financial transactions and fostering economic growth in areas with restricted banking access.