Tether CEO Paolo Ardoino told Bloomberg Friday that the company is “opening” independent domestic stubcoins to meet the needs of the US market. The news is the guidelines and establishment of national innovation for the US Stablecoins Act (Genius Act) amid the US’s attempt to promote stable law.
Ardoino said the international publisher of USDT, the largest Stablecoin, is compliant with the act of genius, saying it is “comfortable” to its genius. However, USDT’s major markets continue to be emerging economies. Because they are the markets we need most, he adds:
“We believe in the importance of USDT as the most used digital dollar in all emerging markets.”
Ardoino also added that Tether’s plans for Stablecoin, issued domestically, are “close to the second half” in terms of football matches.
Why does Tether believe that the US needs another stubcoin?
The World Bank estimates that around 1.4 billion adults remain unbanked and are largely concentrated in emerging economies in sub-Saharan Africa and some Asia. According to Ardoino, meeting the needs of these individuals who have no access to the traditional financial system is Tether’s main mission.
Stablecoin users in emerging markets primarily use USDT for foreign remittances and maintain the value of their savings amortization in local currency. Ardoino said that while 37% of USDT’s user base uses Stablecoin for savings, Tether has over 420 million users across developing countries, adding:
“They (adults without banks) need something stable in their lives. That’s the digital form of US dollars, or USDT.”
However, the US needs Stab Love Coin to serve a different purpose than emerging market users. Tether said, “Stubcoins are certainly important Also In the US, USDT is a good choice to meet the needs of a non-banked population, as there are a wide range of payment methods available domestically.
“In the US, we don’t use Stablecoins to pay to improve the efficiency of our money.”
Therefore, Tether is considering launching domestically issued stubcoins that will become “competitive” in the US economy. So, domestic stubcoins have a “different feature set” from USDT, Ardoino added.
Tether wants to see the genius act passed
Ardoino said Tether is “very interested” to see how the US government regulates Stablecoins. He said:
“In fact, it’s important to see how genius acts distinguish between foreign and domestic publishers.”
Tether plans to ensure that USDT complies with the genius act. This argues that Aldoino is superior to European mica regulations. The issue with Tether’s MICA is what US dollar-based Stablecoins need to hold 60% of the protected area as cash deposits in the European Bank. This is a “bad idea.”
Meanwhile, the Genius Act requires Stablecoin publishers to hold 100% of the cash equivalents that Ardoino called a “great idea,” preferably in the US Treasury Department.
Adroino does not predict complications when complying with genius behavior, whether it is a foreign or domestic Stablecoin publisher. However, he added that he would like to see the genius act passed.
“…In general, we believe it is important that domestic stuff (the US stability of tethers) have clarity of regulations before moving forward.”
On May 19, the US Senate voted to invoke a coagulation on motions to proceed to Genius Act. On May 21, the Senate voted for an allegation to continue, moving the genius act to a final passing vote. The final floor vote is expected to take place after the Congressional Anniversary Break.
