By Adedapo Adesanya
With increased adoption of cryptocurrencies in Nigeria and the larger African market, Tether has said its token holds a promise to Africans, including to hedge against inflation, strict regulation and inequality.
In a chat with Business Post, the chief technical officer (CTO) of Tether, Mr Paolo Ardoino, claimed the token remains 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, making it a major player with the likes of Bitcoin and Ethereum.
“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,” he said.
He noted that stablecoins, like Tether, are a catalyst for cryptocurrency micropayments, which are furthered by widespread merchant adoption, making it possible to overtake credit card networks in the e-commerce sector.
In terms of remittances, the Tether CTO said the coin 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,” he explained.
Speaking on Tether’s plans for the African market and the cryptocurrency space at large, he explained that the token would help propagate freedom.
“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,” adding that Tether has its sights set on reaching individuals, retailers, and shops in the future.
Mr Ardoino explained further that in comparison to Tether’s competitors, its focus is not on the United States or Wall Street but on emerging markets around the world like Africa.
“The United States is fortunate to have highly developed financial infrastructure and the world’s premier currency, the US 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,” he added.
