Tether CTO: Tether is the 22nd largest holder of U.S. debt globally, USDT is the lifeline of emerging markets
Tether CTO Paolo Ardoino responded today for the fifth time to a discussion about China reducing its holdings of US Treasury bonds and turning to gold. Ardoino stated that although Tether is currently the 22nd largest buyer of US Treasury bonds globally, USDT is crucial for emerging markets.
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China Reducing US Treasury Holdings, Turning to Gold
A Twitter account called Wall Street Silver revealed that China has reduced its holdings of US Treasuries by nearly $481 billion from its peak, with the selling pace accelerating. Experts have long speculated whether China would sell off US Treasuries due to economic and currency concerns. According to the chart, China's proportion of US Treasury holdings is rapidly declining, with a shift towards purchasing gold.
According to media reports, China's holdings of US Treasuries have reached a low point not seen in 14 years.
China's ownership of US Treasury debt is down almost $481B from peak levels. The rate of selling is accelerating.
For many years the experts always doubted that China would dump our debt because of the impact on their own economy and currency.
You can see how the line is… pic.twitter.com/7AHZCHrEpl
— Wall Street Silver (@WallStreetSilv) September 4, 2023
USDT, a $72.5 Billion US Debt Holder: USDT is the Lifesaver for Emerging Markets
Paolo Ardoino, the CTO of Tether, stated that Tether is among the top 22 global buyers of US Treasuries, with an exposure of $72.5 billion, surpassing countries like the UAE, Mexico, Australia, and Spain. Despite China's reduction in US debt holdings, USDT is the most widely used stablecoin globally, especially in emerging markets. Many communities see USDT as their lifeline amidst high inflation in national currencies.
Tether, a Believer in Bitcoin
Recently, Paolo, the CTO of Tether, also shared another post where he believes that all exchanges benefiting from Bitcoin's success should reinvest some profits back into Bitcoin. Similar to Bitfinex, investing in ecosystems like the Lightning Network, RGB, Liquid, among others.