Qs & As with Paolo Ardoino of Tether

1^st  Set of Qs & As

1. Let’s meet you, Sir. (self intro of Paolo as Tether CTO)

My name is Paolo Ardoino. I am a computer scientist, a geek, and an innovator. I have extensive knowledge and have coded algorithms for many fields, from artificial intelligence and automated learning to data analysis, cryptography, and networking. I strive to continuously learn new technologies and improve my programming skills so that I can conceive new ideas, tests and projects.

In 2017, I assumed the role of Chief Technical Officer (CTO) for Tether. Before then, I had joined Bitfinex at the beginning of 2015 as a Senior Software Developer, and transitioned to the role of CTO for Bitfinex in 2016. During that period, I oversaw a strong portfolio of different programming languages and developed a genuine passion for distributed systems, high-performance computing and cloud platforms.

2. How will you describe your crypto journey so far?

So far, my crypto journey has been an amazing experience. As a computer scientist and blockchain technology specialist, after my first interaction with computers, I quickly became obsessed with hardware, networking, and cryptography. During my time as a Senior Software Developer for Bitfinex, I was tasked with developing trading engines with platform scalability and low latency. That experience has been invaluable to my time as CTO for both Bitfinex and Tether.

3. Why was Tether created?

For many who have entered into crypto recently (or those new to covering the industry), the history of Tether has become somewhat of an affixed fascination. Tether is a company built on firsts, that is ,  it was the first to introduce the concept of stablecoins in 2014, with a very simple idea: use the blockchain—the same technology that powers Bitcoin—to move fiat currencies in a transparent, efficient, and decentralised way, to help the crypto industry to maturing, allowing for example the arbitrage activity among different crypto-exchanges. It was the first to navigate the complex banking systems as a truly unique financial innovation that the world has never seen before and learned a valuable lesson.

Tether was created to aid faster, cheaper, borderless transactions with increased payment security, price stability, accessibility, as well as giving its customers and business more control over their funds. These initiatives, led by Tether’s executive leadership, is demonstrative of its commitment to transparency and being stewards of promoting the understanding and utility of cryptocurrency and blockchain technology.

4. What distinguishes Tether from other stablecoins?

Well, to begin with, Tether is the largest stablecoin on the market, with the highest trading volume and liquidity. As a stablecoin, Tether is designed to maintain a fixed value over time. It is important to note that the value of a stablecoin is typically pegged to a specific fiat currency, like the U.S. dollar or the Euro.

What makes Tether useful to consumers is that it can easily be transferred between exchanges or people, instead of being limited to simply transferring money through banks. Tether is easy to buy and sell and is available at the place you buy your cryptocurrencies (exchanges). Tether is often used as a way to hold money on exchanges when traders feel the market is extremely volatile. Tether also supports transfers on a larger and more diverse list of blockchains including but not limited to Solana, Ethereum, and TRON.

As mentioned earlier, Tether is the first stablecoin. and has withstood multiple black swan events in crypto. Tether has never refused a redemption in its history, making it the most trusted stablecoin in the world.

5. How has Tether fared over the years?

Tether has championed financial freedom and innovation over the years as we have focused on emerging markets and serving the more than 2 billion unbanked or underbanked people across the globe. As a result, we are proudly not just the largest and most liquid stablecoin in the world, but we have stood tall against black swan events and volatile markets to ensure we never refuse a redemption in our history.

Tether is a resource for the unbanked, a tool for an evolving payment system and a leader in driving the mainstream adoption of a new financial revolution. Through the use of Tether, people in regions across the globe who are either unbanked or underserved by the current financial order can now have access to in-demand fiat currencies like the U.S. dollar. Additionally, for people in countries whose native currencies are battered by high levels of inflation, Tether empowers those countries’ residents to access U.S. dollars without having to go through black markets or prohibitively costly premiums through official exchange rates.

As a leader in championing transparency and financial freedom, Tether is proud of its record of making the crypto economy more efficient. We see ourselves not as a replacement for Bitcoin, but as a complementary piece to Bitcoin and crypto in general as a highly liquid, innovative, and popular token. There will always be a market for Tether, as it presents an opportunity for traders to interact with the larger crypto ecosystem.

6. How does the Team manage Tether being on various blockchains? Have there been any challenges with it?

Tether’s executive leadership team understands its responsibility as the market leader and fully embraces its role in helping educate the world about how stablecoin technology fits into traditional finance, and how it will reshape payments technologies and the financial infrastructure of the world in decades to come

Touching on having it on various blockchains, I am thrilled to inform you that aside from our dedicated team, the success of Tether comes first and foremost through word of mouth and a dedicated community that recognizes its innovation and utility. Definitely one of the critical aspects of our work at Tether is ensuring the maximum levels of security when integrating with new blockchains or managing swaps of Tether tokens across multiple blockchains.

Tether was the first stablecoin in the crypto industry and is used by tens of thousands of traders each day. It is essentially a dollar on a blockchain, and is available on almost every single crypto platform and exchange in this world.

7. What measures have been taken to ensure Tether is safe from collateralization issues?

Tether holds a strong, conservative, and liquid portfolio with an emphasis on safeguarding its reserves. As a leader in transparency and accountability to its customers, Tether was first among its peers to both disclose the composition of its reserves and deliver public attestations.

As Tether has indicated in its published statements and in its most recent assurance attestation with a reporting date of February 9th, 2023, the accuracy of Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the Group as of December 31, 2022. The CRR shows that, in addition to reducing its secured loans as committed, Tether ended 2022 with zero commercial paper in its reserves, and at least $67 billion in consolidated total assets and excess reserves of at least $960 million.

Tether’s reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents, and other short-term deposits. This latest report demonstrates its commitment to transparency and highlights a $300 million reduction in secured loans, more than $700 million net profit added to Tether reserves in the last quarter 2022, and the highest percentage to date of assets allocated in US Treasury Bills, with direct exposure of over 58%.

8. How successful has Tether been in serving as a financial inclusion and inflation-hedging tool?

Stablecoins have become a viable medium of exchange for e-commerce and have proven to be a resource for businesses looking for a more economical and more efficient way for payments to be made among buyers and sellers.

Stablecoins, like Tether,are a catalyst for cryptocurrency micropayments, which are furthered by widespread merchant adoption. Crypto platforms like Bitpay, Bitfinex Pay, and Coinbase Commerce are already allowing merchants to accept stablecoins as payment for goods and services, while leaders in the digital payment space, like Venmo and Cash App, have enabled crypto payments. This added value has given Tether stablecoins the opportunity to overtake credit card networks in the e-commerce sector.

Tether has also found significant use cases for migrant workers making remittances across international frontiers. Before access to stablecoins like Tether, these workers were limited to only being able  to send remittances through businesses like Western Union to get money back to their families and loved ones. This is a slow and costly process, where families end up losing a big chunk of their funds to high fees. Stablecoins eliminate the broker from this equation, allowing these families to retain more of their wealth.

For those looking for a digital stablecoin that is not subject to fiat inflation, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine and we have started listing this on some popular platforms in Africa.

9. With the increased crypto adoption in Africa, does Tether have any plans for the African market and the cryptocurrency space at large?

Yes, Tether is focused on being a catalyst for the freedom of communications, freedom of money, and equality in access in Africa and the cryptocurrency space at large. Tether will continue to emphasise these messages by bringing digital dollars to the real world. Tether has its sights set on reaching individuals, retailers and shops in the future.

Unlike many of Tether’s competitors, our focus is not on the United States or Wall Street, but on emerging markets around the world like in Africa. The United States is fortunate to have highly developed financial infrastructure and the world’s premier currency, the U.S. Dollar. Emerging markets, on the other hand, often struggle with limited financial infrastructure, unstable currencies, and limited access to the Dollar. Tether’s focus on emerging markets has been a key part of the Tether story and expands operations beyond a single main country. Tether will continue to fight for financial freedom and support projects and organisations which advance global freedom and financial inclusion in the emerging markets, like those found in Africa.

10. With the level of crypto knowledge you have acquired now, what advice will you give your crypto-younger self?

My advice to the young crypto lovers and traders is that they should continually seek for financial freedom as that is what Tether represents and always do your own research.

2nd Set of Qs & As

1. Can you give us a brief background about Tether?

Tether is a trailblazer and pioneer of stablecoin technology. It is the pre-eminent stablecoin and also a pioneer for financial freedom and innovation. Created in 2014, Tether has grown to become the largest, most trusted stablecoin with the highest trading volume and liquidity, surpassing that of all rival offerings combined. Tether has positively disrupted the legacy financial system by offering a more modern approach to money and successfully combined digital currency benefits such as instant global transactions with traditional currency benefits such as price stability.

Tether is fully backed by its reserves which include cash, cash equivalents, and other short-term deposits, and is issued based on market demand. Tether was the first stablecoin that withstood multiple black swan events in crypto, and has never refused redemption in its history. We remain committed to leading not only in innovative technology but also in transparency and accountability to our customers, who use the stablecoin to make tens of billions of dollars in trades every day.

1. Why is Tether so popular as the largest stablecoin in the world?

Not only is Tether the company that invented the stablecoin, but the success of Tether comes through word of mouth and a dedicated community that recognizes its innovation and utility. With it being essentially a dollar on the blockchain, and its wide availability on nearly every single crypto platform in the world, it shouldn’t come as a surprise then that Tether is used by tens of thousands of traders each day. Tether can be used to quickly and efficiently move in and out of positions, which is why Tether’s utility has been instrumental to its growth in popularity.

Our popularity also stems from our reliability in the face of market volatility. Since its inception, Tether has never refused a redemption. Even when facing black swan events over the years that have brought down countless crypto companies, Tether has never refused a redemption in its history. Our customers also can count on us to be transparent and accountable to them, since we were the first among our peers to both disclose the composition of our reserves and deliver public attestations.

1. How has Tether gained the confidence and loyalty of its customers over the years?

It certainly helps that Tether is the most transparent stablecoin. It was the first to disclose the composition of its reserves and release regular attestations for the consumption of its customers and the broader public audience. Second, it holds a strong, conservative, and liquid portfolio with an emphasis on safeguarding those reserves. Third, and probably most important, Tether has never refused a redemption to a customer—not once.

In its most recent assurance attestation with a reporting date of February 9th, 2023, the accuracy of Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the Group as of December 31, 2022. The CRR shows that, in addition to reducing its secured loans as committed, Tether ended 2022 with zero commercial paper and at least $67 billion in consolidated total assets and excess reserves of at least $960 million. It also highlights a $300 million reduction in secured loans, more than $700 million net profit added to Tether reserves in the last quarter of 2022, and the highest percentage to date of assets allocated in US Treasury Bills, with direct exposure of over 58%.

Our reserves remain extremely liquid, with the majority of our investments being held in cash, cash equivalents, and other short-term deposits.

1. Why should anyone choose Tether over other available stablecoins?

Not only is Tether the original stablecoin, but it is the biggest stablecoin in the world, with the highest trading volume and liquidity. Tether is also battle-tested, having withstood multiple black swan events in crypto without ever refusing a redemption in our history. In addition to our transparency and resilience,  Tether’s utility is unmatched.

Tether can easily be transferred between exchanges or people, instead of being stuck just transferring money through banks. Tether is easy to buy and sell and is available at the place you buy your cryptocurrencies (exchanges). Tether is often used as a way to hold money on exchanges when traders feel the market is extremely volatile. Tether also supports transfers on a larger and more diverse list of blockchains including but not limited to Tron, Ethereum, and Solana.

1. How does Tether protect against inflation?

Tether is a stablecoin. Stablecoins are designed to maintain a fixed value over time. The value of a stablecoin is typically pegged to a specific fiat currency, like the U.S. dollar, unlike highly volatile cryptocurrencies. Note that, while the redemption cost of a USDt is always one dollar, and while Tether is the most stable of the stablecoins, the secondary market may price Tether tokens differently than their redemption costs.

Due to its unique qualities, stablecoins, and specifically Tether tokens are capable of solving real problems around the world. USDt provides users with a way to escape some inflating currencies, access financial services, preserve wealth, and efficiently transfer value. Additionally, stablecoins have also found significant use cases for migrant workers making remittances across international frontiers. Before Tether, these workers were limited to only sending remittances through businesses like Western Union to send money back to their families and loved ones. This is a slow and costly process, where families end up losing a big chunk of their funds to high fees. Stablecoins eliminate the broker from this equation, allowing these families to retain more of their wealth.

In Africa, Tether allows people to manage their businesses and financial lives, even in the face of currency instability and poor financial infrastructure. For those looking for a digital stablecoin that is not subject to fiat inflation, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine.

1. How does Tether freeze stolen assets? What is this failsafe?

The entire company is in constant communication to ensure any alert and anomaly will be investigated immediately. Tether’s philosophy and culture is that the community comes first, regardless of time and place.

Most stablecoins have a built-in failsafe that will automatically freeze any assets flagged as corrupt. In the case of the Poly Network hack, Tether was able to freeze the $33 million that was stolen by organising a multisig freezing process. Information was peer/public validated, and the tech team acted immediately. The frozen funds will be released back to the legitimate owners once there is confirmation and proof of proper actions taken in order to restore the security of the bridges.

The general process of freezing and re-issuing is extremely thorough. Compliance and Law Enforcement interactions are mandatory to protect all Tether users and the company itself. Tether manages the re-issuance phase extremely carefully to ensure that there are no other claimants, hence there is a delay (of several months) to allow other parties to contact Tether and make their case as well.

1. How would Tether manage a black swan event in which mass amounts of users try to cash out at the same time?

The stress-testing of Tether is not hypothetical. In March 2020, bitcoin dropped by half in a couple of days, and in May 2021, during one of the worst days in bitcoin’s history, prices fell by as much as 30%. During those events, the Tether peg remained solid, all redemptions were honoured, and the price on exchanges remained stable. Tether has been stress-tested multiple times and passed with flying colours and still has never refused redemption in its history.

1. How is Tether doing in terms of regulation in African countries?

Tether is a pioneer in this industry, which is all very new. Rules, regulations, and laws are being made by the day. It is a leader in transparency and getting information to the community and its stakeholders, and demonstrating full backing, and it wants to preserve that position. Tether is not just keeping up with new rules, but helping shape them and helping law enforcement and regulators globally. The company is committed to being a positive force in this space and its actions speak to that.

1. What should we expect from Tether for the African Market?

Tether is focused on being a catalyst for the freedom of communications, freedom of money, and equality in access in Africa and the cryptocurrency space at large. Tether will continue to emphasise these messages by bringing digital dollars to the real world. Tether has its sights set on reaching individuals, retailers and shops in the future.

Unlike many of Tether’s competitors, our focus is not on the United States or Wall Street, but on emerging markets around the world like in Africa. The United States is fortunate to have highly developed financial infrastructure and the world’s premier currency, the U.S. Dollar. Emerging markets, on the other hand, often struggle with limited financial infrastructure, unstable currencies, and limited access to the Dollar. Tether’s focus on emerging markets has been a key part of the Tether story and expands operations beyond a single main country. Tether will continue to fight for financial freedom and support projects and organisations which advance global freedom and financial inclusion in the emerging markets, like those found in Africa.

3^rd Set of Qs & As

1. As the CTO of Tether, please tell us about Tether

Tether is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, Tether has grown to become the most traded cryptocurrency. Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency-digital cash to the bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron, Algorand, and Solana blockchains, Tether makes a significant contribution to a more connected ecosystem. Tether combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, Tether is a fast and low-cost way to transact with money.

1. Is Tether truly a stablecoin?

Tether is the pioneer of stablecoin technology.. Tether is the first to introduce the concept of stablecoins in 2014 with a very simple idea: which is to use the blockchain with the same technology that powers Bitcoin to move currencies in a transparent, efficient, and decentralised way. Tether is the pioneer of stablecoin technology.. Tether is the first to introduce the concept of stablecoins in 2014 with a very simple idea: which is to use the blockchain with the same technology that powers Bitcoin to move currencies in a transparent, efficient, and decentralised way. Tethers stability is evident being the first among its peers to bring transparency into the stablecoin market with the release of its reserve compositions and regular attestations for the consumption of its customers and the broader public audience.  The success of Tether comes also through word of mouth and a dedicated community that recognizes its innovation and utility. Tether is used to move quickly and efficiently in and out of positions, which is why Tether’s utility has become increasingly more popular as the cryptocurrency industry continues to grow.

Tether holds a strong, conservative, and liquid portfolio with an emphasis on safeguarding those reserves. Most importantly, it has never refused redemption to a customer—not once. This stress-testing of Tether is not hypothetical. In March 2020, bitcoin dropped by half in a couple of days. Just two months ago we had one of the worst days in bitcoin’s history, with prices falling by 30% in a few days in May. During those events, the Tether peg remained solid, all redemptions were honoured, and even the price on exchanges remained stable. Tether has been stress-tested multiple times and passed with flying colours. In May of 2022, Tether successfully processed $7bln of USD₮ redemptions for verified individuals. Every redemption request submitted was redeemed in full. In fact, the size of USD₮ redemptions over the previous months, rivals the size of the largest banking withdrawals in history. This unrecord is held by requests for $16.7 billion in withdrawals over 10 days from Washington Mutual. This represented redemption requests for 11% of the bank’s assets, less than the amount Tether processed with ease. Unlike Washington Mutual, which was shut down and seized by regulators, USD₮ has maintained a stable value and highly liquid markets. This year alone, Tether was also able to fulfill 12% of its outstanding liabilities within a week. No bank in the world could process the withdrawal of 12% of its outstanding liabilities within a week.

Tether leads the industry in both transparency and security, never wavering and providing a safe haven for all.

1. Why do you think USDt, being a stablecoin, is as popular as it is, and has become one of the most important tokens?

Tether USDT has grown massively into an important alternative form of payment.

Stablecoins have become a viable medium of exchange for e-commerce and have proven to be a resource for businesses looking for a more economical and more efficient way for payments to be made among buyers and sellers.

Stablecoins have also found significant use cases for migrant workers making remittances across international frontiers. Currently, these workers have to send remittances through businesses like Western Union to get money back to their families and loved ones. This is a slow and costly process, where families end up losing a big chunk of their funds to high fees. Stablecoins eliminate the broker from this equation, allowing these families to retain more of their wealth.

1. How has Tether gained an edge and preference over the traditional financial System?

Tether was the first to navigate the complex banking systems as a truly unique financial innovation that the world has never seen before and learned a valuable lesson. Today, I am glad to say Tether has disrupted the traditional financial system being the  pioneer of financial freedom and innovation, and has since inception grown to become the most traded and trusted cryptocurrency in the world. Aside from the fact that Tether has gained the trust of its customers because of its transparency in the stablecoin market with the release of its reserve compositions and regular attestations for the consumption of its customers and the broader public audience, Tether has made the traditional financial system outdated.

In Africa  for example, lots of individuals and businesses face problems such as high fees from banks on domestic and international payments, long processing times, limited international reach, lack of fee transparency, payment security, and lack of automation. With the introduction of Tether stablecoins, all these major problems have been resolved to make businesses more profitable, drastically reducing credit card frauds, streamlining and reducing errors in transactions,  and making borderless transactions easier, inexpensive, faster, and much more.

5. Who are Tether’s customers

Tether is widely used by tens of thousands of traders daily across Africa, Asia, Latin America, and Europe simply because it makes trading and arbitrage, among other things, more efficient.

Tether tokens are used across a wide range of ages and occupations and are the product of the minds of bitcoiners that have inclusivity and democratisation of access to finance at their core. Therefore, Tether is a product meant to offer a safe harbour for the unbanked. Tether is also extremely popular in emerging countries, where the population is experiencing devaluation of national currencies and cross-border transaction constraints. Due to its unique qualities, stablecoins, and specifically, Tether tokens are capable of solving real problems around the world.

USDt provides users with a way to escape some inflating currencies, access financial services, preserve wealth, and efficiently transfer value. Our customers continue to place their trust and confidence in Tether, as exhibited through our growth. In doing so, they are telling us and the market that our disclosures are sufficient to make well-informed decisions.

1.  What unique advantages does Tether have that differentiate it from others?

Out of all the stablecoins, Tether has the highest trading volume and liquidity. It was also the first stablecoin, has withstood multiple black swan events in crypto, and has never refused a redemption in its history, making it the largest and most trusted stablecoin in the world. Tether can easily be transferred between exchanges or people, instead of transferring money through banks. It is easy to buy and sell and is available at the place you buy your cryptocurrencies (exchanges).

Tether is often used to hold money on exchanges when traders feel the market is extremely volatile. Tether also supports transfers on a larger and more diverse list of blockchains including but not limited to Solana, Ethereum, and TRON.

1. What are Tether Customers using Tether for?

Tether makes the crypto economy much more efficient by putting dollars on a blockchain and is being used to disrupt everything from the digital payment space to e-commerce purchases and even facilitate transactions within decentralised finance ecosystems. Currently, Tether is the most used stablecoin in the ecosystem among crypto traders and completes a minimum of 60 billion, and up to 120 billion, transactions per day.

It is also being used to facilitate cross-border trade and remittances to emerging markets. Tether provides a stable and efficient way of transmitting dollars. It is widely used by tens of thousands of traders daily across Africa, Asia, Latin America, and Europe, simply because it makes trading and arbitrage, among other things, more efficient.

The main purpose of Tether is to make trading cryptocurrencies more accessible and cheaper. As of 2021, more than 75% of Bitcoin trading is done in Tether. Although some people invest in Tether, it is mostly used for liquidity and to hedge against volatility when trading other cryptocurrencies like Bitcoin.

8. How can users invest in Tether?

Tether tokens are not an investment; they are utility tokens for engaging in Internet commerce. Tether tokens can be obtained through a variety of different channels, including many of the leading cryptocurrency exchanges. Tether tokens can be securely stored, sent, and received across the blockchain and are redeemable for the underlying asset, subject to the terms of service and fee schedule.

Meanwhile, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine. As such, Tether Gold allows holders to self-custody their gold-backed crypto. It is the leading asset that provides the security of a digital asset and the safety of being pegged to physical Gold. XAU₮, which is available as an ERC-20 token on the Ethereum blockchain and as a TRC-20 token on the Tron blockchain, can be transferred to any on-chain address from the purchasers’ Tether wallet. Furthermore, Tether Gold (XAU₮) is the only product among the competition that offers zero custody fees and has direct control over the physical gold storage, safely held in a Switzerland vault, adopting best-in-class security and anti-threat measures. Exchanges and platforms where you can invest in and store Tether Gold (XAUt) tokens are : Bitfinex, Ledger, BTSE, BigOne, Gate.io, OKX, BitcoinVN, and Huobi.

9. Can you explain the life cycle of Tether, most especially in Africa?

There is no mystery behind why or how Tethers are created. It’s quite simple, actually. Tethers are created based on market supply and demand. Authorised Tethers are created on a blockchain and represent inventory that is on a shelf awaiting purchase. People can exchange fiat for Tethers using exchanges that support this capability.

For many who have entered into crypto recently (or those new to covering the industry), the history of Tether has become somewhat of an affixed fascination. Tether is a company built on firsts, that is ,  it was the first to introduce the concept of stablecoins in 2014, with a very simple idea: use the blockchain—the same technology that powers Bitcoin—to move currencies in a transparent, efficient, and decentralised way. It was the first to navigate the complex banking systems as a truly unique financial innovation that the world has never seen before and learned a valuable lesson.

Tether was created to aid faster and cheaper borderless transactions with increased payment security, price stability, accessibility, as well as giving its customers and business more control over their funds, especially in emerging markets like Africa. These initiatives, led by Tether’s executive leadership, is demonstrative of its commitment to transparency and being stewards of promoting the understanding and utility of cryptocurrency and blockchain technology.

When it comes to investments, institutions need to follow a higher set of standards. These standards will lead them to adopt crypto into portfolios only as they get comfortable understanding the risks and as regulations, market integrity, and transparency continue to evolve. Tether is ready and willing to interact with regulators across global markets.

4^th Set of Qs & As

1. Tell us briefly about the origin of Tether i.e. why Tether was created

Tether is a company built on firsts — it was the first to introduce the concept of stablecoins in 2014 with a very simple idea: use the blockchain—the same technology that powers Bitcoin—to move currencies in a transparent, efficient, and decentralized way.

Out of all the stablecoins, Tether has the highest trading volume and liquidity. Tether was created to make the crypto economy more efficient by putting dollars on a blockchain and it is being used to disrupt everything from the digital payment space to e-commerce purchases and even facilitate transactions within decentralised finance ecosystems. Currently, Tether is the most used stablecoin in the ecosystem among crypto traders and completes a minimum of $60B and up to $120B in volume per day. It is also being used to facilitate cross-border trade and remittances to emerging markets. Tether provides a stable and efficient way of transmitting value. It is widely used by tens of thousands of traders daily across Africa, Asia, Latin America, and Europe because it makes trading and arbitrage, among other things, more efficient.

2. What differentiates Tether from other cryptocurrencies, and how is it different from fiat money?

Tether is a stablecoin. Stablecoins are designed to maintain a fixed value over time. The value of a stablecoin is typically pegged to a specific real currency, like the U.S. dollar. This is unlike highly volatile cryptocurrencies such as bitcoin. To date, stablecoins have served as a necessary offramp that has been used by traders to move quickly in and out of positions, and provides a stable unit of account for settling crypto payments.  Note that, while the redemption cost of a USDt is always one dollar, and while Tether is the most stable of the stablecoins, the secondary market may price Tether tokens differently than their redemption costs.

3. How is using Tether different from traditional financial payments?

The traditional financial sector is outdated and the current payment mechanisms are falling short of the mark. They are slow, costly, inefficient and full of friction for businesses. Lots of individuals and businesses, for example, in Africa face lots of problems such as high fees from banks on domestic and international payments, long processing times, limited international reach, lack of fee transparency, payment security and lack of automation.

Tether tokens are currently being used to disrupt everything from the digital payment space to e-commerce purchases to facilitating transactions within decentralized finance. Tether can easily be transferred between exchanges or people, instead of transferring money through banks. It is easy to buy and sell and is available at the place you buy your cryptocurrencies (exchanges). Tether is often used as a way to hold money on exchanges when traders feel the market is extremely volatile.

Stablecoins are also being used to facilitate cross-border trade and remittances to emerging markets. For example, Tether provides a stable and efficient way of transmitting dollars. It is widely used by tens of thousands of traders daily across Asia, Latin America, and Europe simply because it makes trading and arbitrage, among other things, more efficient.

With the introduction of Tether stablecoins, all these major problems have been resolved making businesses more profitable, drastically reducing credit card frauds, streamlining and reducing errors in transactions  and making borderless transactions easier, inexpensive and faster.

4. Who are Tethers customers ?

Tether makes the crypto economy much more efficient by putting dollars on a blockchain. Tether tokens are used across a wide range of ages and occupations. Tether is the product of the minds of bitcoiners that have inclusivity and democratisation of access to finance at their core. It is widely used by tens of thousands of traders daily across Africa, Asia, Latin America, and Europe simply because it makes trading and arbitrage, among other things, more efficient.

Tether is also extremely popular in emerging countries where the population is experiencing devaluation of national currencies.

Due to its unique qualities, stablecoins, and specifically, Tether tokens are capable of solving real problems around the world. USDt provides users with a way to escape some inflating currencies, access financial services, preserve wealth, and efficiently transfer value.

Our customers continue to place their trust and confidence in Tether, as exhibited through our growth. In doing so, they are telling us and the market that our disclosures are sufficient to make well-informed decisions.

5. Tell us about the use cases of Tether

Tether tokens are currently being used to disrupt everything from the digital payment space to e-commerce purchases to facilitating transactions within decentralised finance. They are also being used to facilitate cross-border trade and remittances to emerging markets. USDt tokens issued are currently greater than $70B and Tether provides a stable and efficient way of transmitting dollars.

Traders choose Tether because it is the largest, most innovative, and most liquid stablecoin. Tether is useful, which is why Tether tokens have become increasingly more popular as the cryptocurrency industry continues to grow. Therefore, Tether is a product meant to offer a safe harbour for the unbanked.

In Africa, for example, crypto volatility will start to subside as more institutions use crypto and blockchain for real-world, non-speculative use cases (tied to regular business cycles) like payments, real estate, equities, gaming, and more instead of the retail use cases that comprise much of crypto volume today. Institutional adoption will behave as a catalyst for crypto to become a mainstream asset and push to broader adoption by investors and retail users.

6. What is your opinion on algorithmic stablecoins?

Unlike collateralized stablecoins where each coin is fully backed by collateral, algorithmic stablecoins attempt to maintain their value via various market operations that have frequently been broken down dramatically. Terra was an algorithmic stablecoin that at the end of the day was not fully collateralized. It has a number of mechanisms designed to achieve stability, but ultimately those failed. Compared to Tether, USDT which is always fully backed by reserves, algorithmic stablecoins are highly vulnerable to market volatility. While the USDT situation means nothing for the centralized stablecoin market, being that they are entirely different types of assets, it did highlight a weakness in the market and the need for education among traders.

In the aftermath of Terra/Luna’s dramatic collapse, stablecoins have fallen under a new wave of scrutiny from investors, and critics. However, it is important to distinguish Terra – and its unique algorithmic approach – from the more straightforward, asset-backed stablecoins, including Tether. Terra and USD₮ utilize completely different designs, mechanisms, and collateral.

7.. How would you handle a mass liquidation of Tethers?

First of all, Tether is the most transparent stablecoin. It was the first to disclose the composition of its reserves. Second, it holds a strong, conservative, and liquid portfolio with an emphasis on safeguarding those reserves. Most importantly, it has never refused redemption to a customer—not once. This stress-testing of Tether is not hypothetical. In March 2020, bitcoin dropped by half in a couple of days. Just two months ago we had one of the worst days in bitcoin’s history, with prices falling by 30% in a few days in May. During those events, the Tether peg remained solid, all redemptions were honoured, and even the price on exchanges remained stable. Tether has been stress-tested multiple times and passed with flying colours. In May of 2022, Tether successfully processed $7bln of USD₮ redemptions for verified individuals. Every redemption request submitted was redeemed in full. In fact, the size of USD₮ redemptions over the previous months, rivals the size of the largest banking withdrawals in history. This unrecord is held by requests for $16.7 billion in withdrawals over 10 days from Washington Mutual. This represented redemption requests for 11% of the bank’s assets, less than the amount Tether processed with ease. Unlike Washington Mutual, which was shut down and seized by regulators, USD₮ has maintained a stable value and highly liquid markets. This year alone, Tether was also able to fulfill 12% of its outstanding liabilities within a week. No bank in the world could process the withdrawal of 12% of its outstanding liabilities within a week.

Tether leads the industry in both transparency and security, never wavering and providing a safe haven for all.

8. What is Tether Gold and how does it work?

XAUt is a digital token, backed by physical gold. From ancient civilizations, humans have used gold as money and a store of value. Since then, and especially in times when the overall macro market has been in distress, gold has been used as a hedge. For those looking for a digital stablecoin that is not subject to fiat inflation, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine. Gold has historically been an excellent hedge against inflation because its price tends to rise when the cost-of-living increases. In this unprecedented time in which central banks print more money than ever,Gold is a great choice to store your wealth because of its scarcity.

Unlike fiat paper currency, coins or other assets, gold has maintained its value throughout the ages. People see gold as a way to pass on and preserve their wealth from one generation to the next.Gold has historically been an excellent hedge against inflation because its price tends to rise when the cost-of-living increases. In this unprecedented time in which central banks print more money than ever,Gold is a great choice to store your wealth because of its scarcity.

Tether Gold (XAUt) is a token that provides you ownership of real physical gold. By putting gold on a Blockchain, we unlock a variety of characteristics that typically only crypto assets possess.

As such, Tether Gold allows holders to self-custody their gold-backed crypto. It is the leading asset that provides the security of a digital XAUt is a digital token, backed by physical gold.asset and the safety of being pegged to physical Gold. XAU₮, which is available as an ERC-20 token on the Ethereum blockchain and as a TRC-20 token on the Tron blockchain, can be transferred to any on-chain address from the purchasers’ Tether wallet.

Transporting your XAUt tokens is as easy as taking your other crypto-assets with you, whenever you need to. XAUt tokens however, can be traded 24/7, 365 days a year from anywhere in the world on exchanges that list XAUt Tokens. All physical gold that backs XAUt tokens can be tracked on our website. At any point in time, you can verify your gold allocation in our vaults. It’s difficult to split up your physical gold bars. However XAUt tokens are divisible into increments as small as 0.000001 fine troy ounce of gold and also easily redeemable.

Tether Gold (XAU₮) is the only product among the competition that offers zero custody fees and has direct control over the physical gold storage, safely held in a Switzerland vault, adopting best-in-class security and anti-threat measures.

9. What would you say is Tether’s major weakness or challenge?

An algorithmic stablecoin loses its peg when there is not enough liquidity, real liquidity sustaining a drop in the market like we have seen cascading liquidations in the past days. With Tether backed by assets of US Treasuries, it’s a different thing. The worst-case scenario is that they shrink but do not shrink in strength.

And even if it shrinks, we have reserves in Tether that are increasing more than 100% the backing of the stablecoin. Therefore, if Tether shrinks to $70B, the reserves are there so inherently that they are composing even a more significant part proportionally of the backing of the stable coin.

On the blockchain, the level of transactions is dwarfing all the stablecoins. So, that is, you know, the different types of use cases, what actually makes Tether resilient as well. So you have a stablecoin created for one single purpose that is not going to yield the people more wealth. It is actually a tool, it’s a dollar on a blockchain it’s simple as that.

10. Where do you see Tether as an African-adopted Stablecoin?

Tether, as a stablecoin, is presented as an excellent opportunity to interact with the crypto ecosystem. It is a resource for the unbanked, an instrument to evolve the payment system, and a leader in driving the general adoption of a new financial revolution. For those looking for a digital stablecoin that is not subject to fiat inflation, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine.

When it comes to investments, institutions need to follow a higher set of standards. These standards will lead them to adopt crypto into portfolios only as they get comfortable understanding the risks and as regulations, market integrity, and transparency continue to evolve.

11. How is Tether navigating regulation in Africa

Tether is a pioneer in this industry, which is all very new. Rules, regulations, and laws are being made by the day. It is a leader in transparency and getting information to the community and its stakeholders, and demonstrating full backing, and it wants to preserve that position. Tether is not just keeping up with new rules, but helping shape them and helping law enforcement and regulators globally. The company is committed to being a positive force in this space and its actions speak to that.

12. What are Tether’s plans or strategies to penetrate the African Market?

Tether tokens are used across a wide range of ages and occupations. Tether is the product of the minds of bitcoiners that have inclusivity and democratisation of access to finance at their core. Therefore, Tether is a product meant to offer a safe harbour for the unbanked.

5th Set of Qs & As

1.How did you become the CTO of Tether and how has the experience been?

I joined Bitfinex as a Senior Software Developer in 2014, I was tasked with trading engine development, platform scalability, and high availability. Later in 2016, I transitioned to the role of CTO during which time I acquired a strong portfolio of different programming languages and developed a genuine passion for distributed systems, high-performance computing, and cloud platforms. In 2017, I assumed the role of CTO for Tether. As the CTO of Tether, I am responsible for overseeing the development and dissemination of technology for external customers, vendors, and other clients to help improve and increase business. So far it has been an amazing experience

2.$USDT is regarded as the foremost and leading stablecoin, how did it achieve this feat and how does it intend to maintain it?

Tether USDT has grown massively into an important alternative form of payment.  Stablecoins have become a viable medium of exchange for e-commerce and have proven to be a resource for businesses looking for a more economical and more efficient way for payments to be made among buyers and sellers.

Stablecoins have also found significant use cases for migrant workers making remittances across international frontiers. Currently, these workers have to send remittances through businesses like Western Union to get money back to their families and loved ones. This is a slow and costly process, where families end up losing a big chunk of their funds to high fees. Stablecoins eliminate the broker from this equation, allowing these families to retain more of their wealth.

As you may already know Tether is fully backed by its reserves which include cash, cash equivalents, and other short-term deposits like other stablecoins in this category. Regardless of all that has been said in the news, Tether has withstood multiple black swan events in crypto and has never refused redemption in its history.  Tether remains committed to leading not only in innovative technology but also in transparency and accountability to its customers.

3. Tether is being used as a tool for financial inclusion and hedge against inflation. $UST was being used for that purpose this time last year. What measures are being put in place to make sure $USDT doesn’t end up like $UST?

Tether is a stablecoin. Stablecoins are designed to maintain a fixed value over time. The value of a stablecoin is typically pegged to a specific fiat currency, like the U.S. dollar, unlike highly volatile cryptocurrencies. Note that, while the redemption cost of a USDt is always one dollar, and while Tether is the most stable of the stablecoins, the secondary market may price Tether tokens differently than their redemption costs.

Due to its unique qualities, stablecoins, and specifically Tether tokens are capable of solving real problems around the world. USDt provides users with a way to escape some inflating currencies, access financial services, preserve wealth, and efficiently transfer value. Additionally, stablecoins have also found significant use cases for migrant workers making remittances across international frontiers. Before Tether, these workers were limited to only sending remittances through businesses like Western Union to send money back to their families and loved ones. This is a slow and costly process, where families end up losing a big chunk of their funds to high fees. Stablecoins eliminate the broker from this equation, allowing these families to retain more of their wealth.

In Africa, Tether allows people to manage their businesses and financial lives, even in the face of currency instability and poor financial infrastructure. For those looking for a digital stablecoin that is not subject to fiat inflation, Tether offers Tether Gold (XAUT), a product for those wanting a stablecoin that is based on a commodity that is scarce and expensive to mine.

4.Just this week, Paxos was ordered by the SEC to stop issuing Binance’s BUSD. This led to massive transfer of funds from BUSD to USDT. Will this tension in any way affect Tether? Are there indications that Tether could face issues like the one Binance is facing, in the near future?

First of all, Tether is the most transparent stablecoin. It was the first to disclose the composition of its reserves. Second, it holds a strong, conservative, and liquid portfolio with an emphasis on safeguarding those reserves. Most importantly, it has never refused redemption to a customer—not once. This stress-testing of Tether is not hypothetical. In March 2020, bitcoin dropped by half in a couple of days. Just two months ago we had one of the worst days in bitcoin’s history, with prices falling by 30% in a few days in May. During those events, the Tether peg remained solid, all redemptions were honoured, and even the price on exchanges remained stable. Tether has been stress-tested multiple times and passed with flying colours. In May of 2022, Tether successfully processed $7bln of USD₮ redemptions for verified individuals. Every redemption request submitted was redeemed in full. In fact, the size of USD₮ redemptions over the previous months, rivals the size of the largest banking withdrawals in history. This unrecord is held by requests for $16.7 billion in withdrawals over 10 days from Washington Mutual. This represented redemption requests for 11% of the bank’s assets, less than the amount Tether processed with ease. Unlike Washington Mutual, which was shut down and seized by regulators, USD₮ has maintained a stable value and highly liquid markets. This year alone, Tether was also able to fulfil 12% of its outstanding liabilities within a week. No bank in the world could process the withdrawal of 12% of its outstanding liabilities within a week.

Tether leads the industry in both transparency and security, never wavering and providing a safe haven for all.

5.There are recurrent reports that maintain that Tether is not being truthful with its reserves. What do you have to say on this and what does it indicate for the industry?

Tether has indicated in its published statements and in its most recent assurance attestation with a reporting date of February 9th, 2023, the accuracy of Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the Group as of December 31, 2022. The CRR shows that, in addition to reducing its secured loans as committed, Tether ended 2022 with zero commercial paper and at least $67 billion in consolidated total assets and excess reserves of at least $960 million.

Tether’s reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents, and other short-term deposits. This latest report demonstrates its commitment to transparency and highlights a $300 million reduction in secured loans, more than $700 million net profit added to Tether reserves in the last quarter 2022, and the highest percentage to date of assets allocated in US Treasury Bills, with direct exposure of over 58%.

Moreover, Tether maintains cash that is many multiples of its largest single historical redemption and its largest 24-hour period of redemptions.

6. Just last week, a report by Wall Street Journal says Tether is being run by young and inexperienced founders. How true is this claim and do you think it might have any impact on the company?

The Tether initiatives are led by Tether’s executive leadership, Giancarlo Devasini and Jean-Louis Vander Velde, who are, respectively, the CFO and CEO of Tether, are demonstrative of their commitment to transparency and being stewards of promoting the understanding and utility of cryptocurrency and blockchain technology. Like many successful entrepreneurs, Giancarlo and JL ventured into several smaller businesses before ultimately building companies in a brand-new industry that many observers have described as the second coming of the Internet. They are justifiably proud of the contributions that Tether has made to the growth of the cryptocurrency ecosystem, which now drives trillions of dollars in real-world value.

As part of their position as market leaders, both Giancarlo and Jean-Louis have supported and worked with government officials around the world to encourage a better understanding of cryptocurrency technology.

While many may still find entertainment in rehashing the past, the team is committed to pushing forward and remaining at the forefront of educating the world about stablecoins.

7. What plans does Tether have for the African market?

Tether is focused on being a catalyst for the freedom of communications, freedom of money, and equality in access in Africa and the cryptocurrency space at large. Tether will continue to emphasise these messages by bringing digital dollars to the real world. Tether has its sights set on reaching individuals, retailers and shops in the future.

Unlike many of Tether’s competitors, our focus is not on the United States or Wall Street, but on emerging markets around the world like in Africa. The United States is fortunate to have highly developed financial infrastructure and the world’s premier currency, the U.S. Dollar. Emerging markets, on the other hand, often struggle with limited financial infrastructure, unstable currencies, and limited access to the Dollar. Tether’s focus on emerging markets has been a key part of the Tether story and expands operations beyond a single main country. Tether will continue to fight for financial freedom and support projects and organisations which advance global freedom and financial inclusion in the emerging markets, like those found in Africa.

8. Subsequently, what exciting developments and updates should we expect from Tether?

Tether tokens are used across a wide range of ages and occupations. Tether is the product of the minds of bitcoiners that have inclusivity and democratization of access to finance at their core. Therefore, Tether is a product meant to offer a safe harbor for the unbanked. We believe that Tether tokens are set to outpace traditional credit and debit card solutions because they are cheaper, faster,  and more transparent.