The USDT stablecoin emerged to solve the arbitrage problem and is the fiat on-ramp for Bitcoin and other crypto assets. BTC has prevented El Salvador from getting a loan of USD 1.3 billion, but Ardoino believes investors will massively buy Bitcoin bonds.
Paolo Ardoino, the CTO of Tether (USDT), sees the stablecoin as complementary to Bitcoin (BTC), not as its replacement. He says that he jumped into the crypto world in 2012 when the Bitcoin white paper came into his hands.
The document fixed in his mind the idea that people could protect their wealth without resorting to banks or other intermediaries. He also learned that Bitcoin allowed millions of unbanked people to access financial services.
He noted the positives of the pioneering cryptocurrency and set about studying the market. He then realized that arbitrage was nearly impossible in 2013 when Bitcoin hit the USD 1,000 threshold for the first time. That investment technique allows buying an asset at a low price in one market and selling it at a higher price in another market.
He explained that it was then not easy though it was possible to transfer Bitcoin back and forth in ten minutes. He also pointed out that it was necessary to invest between one and five days to settle fiat money in banks, which were upset by the appearance of cryptocurrencies.
The developer said that Tether emerged as an alternative to solve the arbitrage problem. He highlighted that the stablecoin is the fiat on-ramp for Bitcoin and other crypto assets and one of the most used cryptocurrencies.
Bitcoin Bonds of El Salvador Are a High-Impact Plan
The government of El Salvador adopted Bitcoin as legal tender in September 2021. The Central American country plans to build a Bitcoin City, which they will finance with the issuance of bonds based on the cryptocurrency.
The great interest in the volcano bonds of El Salvador makes people want that to happen as they consider it the best time. For almost 14 years, many have said Bitcoin could save countries and cities as it is the best currency.
The adoption of Bitcoin has prevented the Central American country from obtaining a loan of USD 1.3 billion through the International Monetary Fund (IMF). For that reason, the world is watching what might happen next.
However, Ardoino is optimistic that investors will massively buy Bitcoin-based bonds, BTC, and Tether. He stated that few jurisdictions were at the forefront of Bitcoin bond financial innovation.
The World Will Gain Financial Freedom in 2022
Ardoino believes that the world will make huge strides toward the financial freedom that Bitcoin and Tether have long sought. He predicts that the focus will be on Bitcoin due to the current global events.
The expert recalled that people had invested a lot of money in different tokens hoping they would be worth 100 times more. However, he stressed that all the money would go to Bitcoin this year, as everyone would realize it is the ideal financial structure.
Bitcoin is trading at around USD 41,205 and has accumulated a 2.3% gain over the last 24 hours. Its daily trading volume is above USD 25.34 billion, and its market capitalization is about USD 783.34 billion, according to CoinGecko.
By Alexander Salazar
