USDT Sets New Record, But Regulators Are Worried
The Crypto Dollar of the Forgotten: The Other Face of Tether
USDT finds a valuable position in the wallets of the most vulnerable people in the globe while American regulators hone their tools. Tether CEO Paolo Ardoino commemorates this momentous occasion in a tweet on July 16: “An unprecedented milestone, a declaration of the USDT’s unmatched value as a digital dollar for billions of people in developing and emerging markets.”
And this usefulness goes beyond just words: USDT is becoming a stronghold against hyperinflation in Nigeria, Argentina, Lebanon, and Turkey. It allows millions of families to transmit, receive, and keep value while avoiding failing local banks.
A digital dollar that no one really controls and that may be accessed through Binance, Tron, or Telegram. Tether offers steadiness rather than dreams. And that’s considered a luxury in some nations.
The GENIUS Act or the States’ Revenge on Stablecoins
The GENIUS Act moves forward in the quiet hallways of the US Senate. If Tether’s reserves are not examined by a third party, this bill might merely outlaw its use in the US. Although it is a reasonable regulation, the crypto financial industry is rocked. because a complete audit of Tether’s reserves has never been approved.
Analysts estimate that between 85% and 90% of the total bitcoin volume worldwide is currently represented by USDT. Additionally, the situation is explosive, according to cryptocurrency advocate Jacob King.
As soon as the GENIUS Act is approved by the Senate, Tether will be outlawed. Why, in your opinion, do they frantically print USDT to drive prices up to unaffordable levels? […] Get out while you can if you own cryptocurrency.
The United States aims to regain control over digital finance by enforcing control over Tether’s reserves. The sovereignties of states and blockchains are at odds with one another.
Liquidity, leverage, overheating: Tether on the edge
Warning signs flare behind the explosion in statistics. Tether attacked once more on July 16th, issuing two billion USDT in a single day. Some went to inventories, while others went to Binance. a tactic that raises questions regarding the intent behind these issuances.
Additionally, the bitcoin market is under increasing pressure due to leverage and derivatives. Overleveraged funds could suffer a deadly cascade of forced liquidations.
According to Tether, its reserves are sufficient to cover all of its tokens. Officially, 8 billion in gold and 100 billion in Treasury bills. But no outside company can verify this number.
Key numerical benchmarks:
- Tether has issued 160 billion USDT, a historic record;
- 2 billion USDT minted in one day, July 16;
- $127 billion in Treasury bonds according to Tether, but without external audit;
- 85% of estimated Bitcoin volume depends on USDT according to analysts;
- Tether is used in more than 150 countries, often as a substitute for local currencies.
USDT continues to be the foundation of cryptocurrency liquidity in spite of everything. The combination of instantaneousness, lack of KYC, and stability is explosive. or, depending on your point of view, a lifesaver.
Tether adheres to a strategy of building up substantial reserves in support of wallet initiatives and Web3 aspirations. According to reports, the corporation currently owns about 50 tons of gold and over 100,000 bitcoins. A central bank-like safe—without the bank.
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