Tether and its importance in high inflation countries like Turkey

Tether and its importance in high inflation countries like Turkey

Tether's CEO, Paolo Ardoino, recently explained the key role that stablecoin Tether (USDT) plays in countries facing high inflation and weak financial infrastructure, such as Turkey. USDT, the largest stablecoin by market capitalization, is proving to be an important tool not only in the cryptocurrency markets, but also in the daily lives of users in these regions.

In an interview with Tom Farley, CEO of Bullish, Ardoino highlighted how USDT has become a globally recognized digital dollar whose importance extends far beyond the United States. Stablecoins like USDT aim to provide stability in volatile crypto markets by being pegged to stable real assets, primarily the US dollar.

In regions with high inflation, such as Argentina and Turkey, USDT is becoming a stable alternative to national currencies that can be highly volatile, according to Ardoino. "People used to have to rely on the black market to get U.S. dollars," Ardoino says. Today, he says, the USDT offers a much more affordable and reliable way to preserve value.

"In countries like Turkey, where access to dollars is limited to local financial systems, USDT works much better than traditional methods," Ardoino said.

USDT's global dominance

Currently, USDT is the third largest cryptocurrency on the market, just behind Bitcoin (BTC) and Ethereum (ETH), with a market capitalization of around $120 billion. This keeps USDT ahead of its closest competitor, Circle's USDC stablecoin, which has a market capitalization of $35.6 billion.

Interestingly, more than half of USDT's supply is issued on the Tron blockchain (over $61 billion), while Ethereum accounts for around $54.3 billion. This diversity and availability of USDT on various blockchain platforms reinforces its position as a key player in the global cryptocurrency market.

Thus, not only does Tether occupy a significant position in the cryptocurrency space, but it is also proving to be an important tool for protecting and preserving value in economies where stability and access to international currencies is limited.