#873 Is Tether Actually Backed By Real Money? w/ Paolo Ardoino
3/20/2022 · 33 min · transcript via mlx
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Key topics
— Tether's backing and reserves: Paolo confirms USDT is backed 100%+ by reserves, with quarterly attestations showing composition and credit ratings (mostly A2 or better per Standard & Poor's).
— Tether's role in crypto markets: Originally created to enable fast arbitrage and trading across exchanges by providing dollar-speed settlement; now serves as remittance, payment, and cross-border solution globally.
— CBDCs and private stablecoins: Paolo argues CBDCs will not compete directly with Tether because central banks won't issue on public blockchains; private stablecoins will wrap CBDCs on decentralized networks.
— Bitcoin and Tether adoption in Switzerland and emerging markets: Plan B focuses on education, funding, and business support rather than forced adoption; targets unbanked populations in emerging economies instead of wealthy developed nations.
— Tether's success strategy: Organic growth through product utility rather than marketing; focus on underserved regions with high inflation and unbanked populations; viewed as complementary to Bitcoin, not a replacement.
Market & price signals
— None discussed.
Actionable insights
— Tether maintains over 100% backing through quarterly attestations with documented reserve breakdowns and credit ratings; you can verify reserve composition and risks independently via published reports.
— Paolo emphasizes Tether targets emerging markets and unbanked populations (2+ billion people without bank access) rather than wealthy developed nations, positioning it as financial inclusion infrastructure.
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