In a wide-ranging interview on Bloomberg’s Odd Lots podcast, Tether CEO Paolo Ardoino made a striking claim: far from undermining the US dollar, the world’s most widely used stablecoin is one of its strongest global allies.

“We are not a competitor to the US dollar,” Ardoino said. “We are bringing the dollar to places where the US has no presence — not even a McDonald’s.”

With over $144 billion in USDT circulation and a user base of more than 400 million, Ardoino framed Tether as a de facto extension of US dollar infrastructure, particularly in Africa and Latin America. He positioned the company’s mission as geopolitical in nature — countering BRICS nations’ efforts to de-dollarise and introduce gold-backed digital alternatives.

“We are the last stronghold before the very strong push towards de-dollarisation made by BRICS countries,” Ardoino said.

For years, Tether has faced scrutiny over its reserves, lack of full audits, and offshore legal structure. Yet Ardoino argued that perception is changing — both within US regulatory circles and in emerging markets.

He highlighted that China is building airports, schools, and hospitals across the Global South, exporting not only goods but currency infrastructure. In contrast, Ardoino said, the United States has failed to meet the demand for financial access.

“Tether is the company solving financial inclusion in the strongest way possible,” he said. “We’re doing what the US banking system couldn’t — or wouldn’t — do.”

Tether’s ambitions go far beyond blockchain. Ardoino described the company’s investment in physical infrastructure, such as solar-powered kiosks in African villages, where people can swap batteries and conduct USDT transactions.

For just 3 USDT per month, people in off-grid areas can rent swappable batteries and access basic electricity — and in doing so, integrate with a digital dollar system that’s unavailable via banks.

“This is something you’ll be able to see from space,” Ardoino said, referencing the transformation of dark, power-starved regions across Africa into connected economic nodes powered by USDT.

Tether has long been viewed with suspicion by US regulators and media. For years, it avoided full audits and attracted criticism over its opacity. Ardoino admitted that previous US administrations had pressured auditing firms not to work with crypto firms like Tether.

But he said the tide is turning.

“We’ve worked on over 400 law enforcement operations,” Ardoino said. “We collaborate with the FBI, Secret Service, and DOJ.”

He went further, claiming Tether is more proactive than its US-based stablecoin competitors in freezing illicit funds and responding to scams — sometimes within minutes of being contacted by law enforcement.

While institutions complain that USDT pays no yield, Ardoino dismissed this as irrelevant for Tether’s core users. In Argentina, Turkey, Nigeria, and elsewhere, national currencies have collapsed against the dollar. For these users, Tether is a lifeline.

“Institutions care about basis points. Our users care about survival,” he said.

Despite generating over $20 billion in profit over 2.5 years, Tether has distributed only a small portion to shareholders. The company reinvests 95% of earnings into product development, expansion, and strategic initiatives like AI and Bitcoin mining.

It also maintains over $20 billion in excess equity, and, according to Ardoino, can withstand massive redemptions — citing a successful $20 billion redemption in 25 days during the 2022 crypto downturn.

Ardoino welcomed new legislative proposals in the US, such as the Genius Act, which would regulate payment stablecoins issued domestically. He said Tether would consider launching a US-only institutional coin under the new framework, separate from the international USDT.

But he made it clear that Tether’s focus remains on the unbanked 3 billion people globally, not financial institutions or high-frequency traders.

“JP Morgan doesn’t want our customers. They’re too poor,” he said bluntly.

It is an irony not lost on the podcast hosts that Tether — founded by Europeans and once cast as a crypto rogue — is now being portrayed as a bulwark for American power.

“It’s a little depressing,” said host Tracy Alloway. “That the dollar’s best global advocate is a company incorporated in the BVI and moving to El Salvador.”

But Ardoino was unapologetic. “History can be funny like that.”

Attribution:

This article is based on comments made during an episode of Odd Lots, hosted by Tracy Alloway and Joe Weisenthal. The episode aired in April 2024 and is available on Bloomberg.com and podcast platforms.