As an analyst with a background in global finance and economics, I’ve closely followed the efforts of the BRICS Group to challenge the dominance of the US Dollar in international trade and cross-border transactions. The recent developments, as outlined in this article, highlight the growing importance of stablecoins like Tether (USDT) in this context.
The use of USDT (Tether) tied to the US Dollar could pose a significant challenge for the BRICS Group as they aim to undermine the dominance of the US currency.
BRICS Group Expanding De-dollarization Agenda
Paolo Ardoino, the head of the stablecoin issuer, praised USDT for its widespread applications. He referred to it as a currency that effortlessly transports the value of the US dollar to a vast population globally. In developing countries, he emphasized, USDT serves as an essential substitute for their unstable local currencies.
Significant: Ardoino’s response regarding Tether was prompted by a previous comment from Howard Lutnick, the CEO of Cantor Fitzgerald.
Lutnick stated that the BRICS organization, consisting of Brazil, Russia, India, China, South Africa, and several other nations, has extended an invitation to Iran to become a part of this expanding group. The BRICS countries have been experiencing significant growth in recent months, and their main objective is to challenge the prevalence of the US dollar as the global currency.
Tether’s US Dollar stablecoin provides access to the U.S. dollar for over 500 million individuals residing in underdeveloped regions, offering them a more stable monetary alternative as the value of their local currencies continues to depreciate.
Through this activity, Tether, has been…
— Paolo Ardoino (@paoloardoino) June 20, 2024
As a seasoned crypto investor, I’ve noticed that for quite some time now, this intergovernmental organization has been mulling over the possibility of adopting an alternative currency for settling transactions across borders. Their ultimate goal is to minimize reliance on the US dollar, which is a process often referred to as de-dollarization.
At one point, BRICS unveiled plans for a digital currency and blockchain-based payment system, with the possibility of introducing a stablecoin within the consortium. Russian President Vladimir Putin suggested that BRICS might consider utilizing Ripple‘s XRP for cross-border transactions as an option.
Cantor Fitzgerald’s CEO Support Tether
As a researcher studying global financial trends, I’ve observed that the CEO of Cantor Fitzgerald acknowledges the collaborative efforts of BRICS member countries in challenging the dominance of the US Dollar. In response, he advocates for the development of a responsible dollar-backed stablecoin by the United States as a means to competitively counteract these nations’ initiatives.
“The digital dollar matters more now than ever,” Lutnick said.
As a crypto investor, I’d put it this way: I firmly believe that the dominance of the US dollar holds significant importance for America’s economic health.
Lutnick didn’t explicitly mention which USD-pegged stablecoin the US might consider, but his remarks may have referred to USDT based on his past stance. This possible implication seems to have sparked Ardoino’s response, as he has publicly endorsed Tether in the past. In early 2024, Tether’s Reserve earned credibility when Cantor Fitzgerald verified that the company indeed holds the claimed reserves.
This could be another strategy for him to tout the capacity of the digital currency.
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2024-06-20 22:16