This episode explores the phenomenal growth of Tether, the world's largest stablecoin, and the controversies surrounding it. Against the backdrop of Tether's unexpected success, reaching $144 billion in issued tokens, CEO Paolo Ardoino discusses the company's strategy and future plans. More significantly, the conversation delves into the challenges Tether faced, including accusations of being a scam and the difficulty in securing an audit from major accounting firms. For instance, Ardoino attributes past difficulties to regulatory pressure from the previous administration, but expresses optimism about the changing regulatory landscape under the current administration. As the discussion pivoted to Tether's business model, Ardoino highlighted its unique position in serving unbanked populations in emerging markets, where the focus is on providing financial inclusion rather than maximizing returns for institutional investors. In contrast to competitors, Tether's direct holdings of U.S. treasuries and its ability to handle massive redemption pressures were emphasized. This episode reveals the complex interplay between regulatory scrutiny, financial innovation, and the global reach of cryptocurrencies, highlighting the evolving role of stablecoins in the international financial system.
