Compilation | Wu said blockchain
Original link:
https://www.youtube.com/watch?v=-fl3rp7jgac
tether CEO Paolo Ardoino in the first issue co Intelelegraph's podcast discusses the recent turmoil in global markets, and explains how tether provides protection for the global middle class. He also criticized mica regulations for stablecoins and shared his thoughts on Trump’s plan to create a Bitcoin reserve in the United States. Does the success of
tether mean the economic failure of this country?
Yes, I might express this point in a slightly different way. While the basic mechanics are the same, USDT's success is actually a symptom of the economic success of many countries. This is not our fault. I think thank god for usdt because as I said before it helped hundreds of millions of people get out of systems that were failing. These systems are failing because their governments and central banks have printed too much money out of thin air for too long. You can look at what's happening in Japan, where the stock market is crashing and the yen isn't doing too well. They are doing everything they can to protect it, but at some point it may collapse. Many countries, many governments, and central banks are failing. So ultimately, it's kind of sad. While companies have to make money, you might want to make a little less and see more central bank policymakers be smarter and do a better job of protecting the people of their countries.
mica How do regulations affect tether?
First of all, there is a little misunderstanding. I think usdt can still be traded on platforms like okx and binance. The problem with restrictions imposed by mica is that there are two types of restrictions. One is to reduce or limit the issuance and circulation of stablecoins. These limits make the system more secure, and we have no problem with that. But there's another type of restriction, and that's on reserves. You might think that limits on reserves should make stablecoins safer. Actually, the problem I and we (tether) have is that these restrictions require that 60% of the reserves of a stablecoin like usdt must be held in cash in banks.
The problem is that cash deposits in Europe above €100,000 are not protected by insurance. If you are a stablecoin company with €10 billion under management but can only insure deposits of €100,000, that creates a big problem. We can take a look at what happened during the 2023 Silicon Valley Bank event. Our main competitor has $3.3 billion in cash deposits in Silicon Valley banks. We all know what happened when Silicon Valley Bank failed, and our main competitor nearly failed. So, I think we have a good example of why this is a bad idea. If a bank goes bankrupt because it can't honor your withdrawal requests, it's effectively a bank run, and as a stablecoin company you also go bankrupt because the banks you rely on don't enforce fractional reserves. Therefore, my concern about mica is that instead of making the system more secure, it brings great systemic risks to stablecoins and the underlying banking system.
Additionally, our major competitors have expressed similar concerns in recent weeks. So now multiple companies are voicing the same concerns.
Do you believe Trump’s plan to create a U.S. Bitcoin reserve?
I think overall, and especially in Asia, central banks have been buying more and more gold in recent months. Bitcoin is far superior to gold, although it is not yet widely understood.Gold is 7,000 years old and therefore has a strong hold on people's minds as the perfect store of value. But Bitcoin is actually far superior to gold. So, if a country keeps Bitcoin as part of its national reserves, especially if it keeps buying Bitcoin and not selling it, that would be a very smart move, and many other countries will follow suit.
The beauty of Bitcoin is that it is the only currency that is completely controlled by mathematics. It’s not about trusting a person or institution, it’s about trusting math. And mathematics is the only objective thing we have in this universe. So, if a country, especially a country as powerful as the United States, uses a currency backed by mathematics, it will send a huge signal to the rest of the world. I'm very optimistic about this.
As for tether, part of our company's reserves are also held in Bitcoin, and we convert part of our profits into Bitcoin. So, if this strategy proves to be correct, it will prove that the strategy we have been doing is correct.
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