Why Tether, Not Washington, Decides the Future of the U.S. Dollar
Sit down Matthew Miller.....
A Symbol of Dollar Hegemony, No Matter the Jurisdiction
In this recent Bloomberg interview, Ardoino delivered a compelling argument about why Tether, despite issuing a U.S. dollar stablecoin, operates from El Salvador and Switzerland rather than the United States.
His response was nothing short of a masterclass in understanding global financial demand, product-market fit, and why the stablecoin wars are bigger than U.S. regulatory preferences. Or at least a masterclass in giving a constructive response to a snarky question.
Ultimately, the battle is about who truly upholds the dominance of the U.S. dollar in an economic landscape that sends shivers down the spine of global markets.
The Stablecoin Bill & Tether’s Unmatched Global Use Case
When asked about the potential impact of the U.S. stablecoin bill, Ardoino made it clear: regulatory clarity is more than welcome, but Tether is already doing what no government initiative or traditional financial institution has managed to accomplish; sustaining U.S. dollar dominance in emerging markets.
Tether is the digital lifeline for 400 million+ users in developing countries who lack access to stable banking systems. With 40 million new wallets per quarter, the sheer scale of Tether’s adoption is taking the FEDs breath away. No other stablecoin; even U.S.-compliant ones can claim such widespread real-world use.
Tether’s Growing Ties in Washington
Despite operating outside U.S. borders, Tether is far from being an outsider in Washington.
Paolo Ardoino confirmed meetings with lawmakers and the U.S. administration
Tether has strong institutional relationships, particularly with Cantor Fitzgerald
Tether is deeply integrated into global financial systems through its U.S. Treasury holdings
Ardoino emphasized that Cantor Fitzgerald; led by Howard Lutnick, a key financial player with deep U.S. political ties conducted extensive due diligence on Tether before becoming its trusted custodian for $115 billion in U.S. Treasuries.
For reference, Tether is now the 19th largest holder of U.S. Treasuries in the world, ahead of several sovereign nations. If that doesn’t underscore its significance in global finance, what does?
The Billion-Dollar Question: Why Not Operate from the U.S.?
At one point in the interview, a Bloomberg host posed the provocative question:
"Why are you based in El Salvador and spending time in Switzerland when you have a U.S. dollar stablecoin? Why don't you do your work out of the United States if the underlying asset is our dollar?"
Ardoino’s response was both simple and profound:
Tether’s core user base is outside the U.S.
In the U.S., there are multiple digital payment options; Zelle, Venmo, PayPal, credit cards, debit cards. 95% of Americans are banked
In contrast, there are 3 billion people globally who are unbanked or underbanked; and they overwhelmingly prefer to hold dollars over their local currency
Tether operates where the demand is greatest.
U.S. regulators assume dollar access is easy, but in countries suffering from inflation and financial instability, USDT is the only reliable option for millions
The fact that Tether is buying up U.S. Treasuries and holding $115 billion in reserves shows that it is doing more for U.S. dollar stability than many U.S.-based financial firms
Why This Interview Matters (To Me)
This short exchange highlights why I love Tether and why the stablecoin war isn’t about U.S. or European compliance; it’s about who puts their money where their mouth is and actually defends and expands dollar dominance worldwide. So let’s do a bit of a reframe….
Tether isn’t avoiding U.S. oversight. It has active relationships with U.S. institutions, but its mission is global
U.S.-regulated stablecoins (like USDC) might have Washington’s blessing, but they lack Tether’s real-world network effect
If U.S. regulators continue prioritizing restrictive policies, they risk weakening dollar adoption instead of strengthening it
Ardoino’s stance is clear: The U.S. dollar’s reach is strongest where people need it the most, and Tether is the vehicle making that happen.
At the end of the day, the stablecoin war will be won by whoever has the biggest network effect.
And right now, that’s Tether.
I love stablecoins, Tether in particular, and I will be writing about the ongoing and ever-increasing future stablecoin war. Stay tuned for insights, drama, and analysis as it all unfolds.
P.S. In case you didn’t realize, I am not Patrick Hansen