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Tether CEO Reacts to Massive USDT Demand in Paraguay
Tether CEO Paolo Ardoino has responded to claims that the company's stablecoin, USDT, is being increasingly sought after in Paraguay following a major banking crisis that cut off millions of people from their savings.
Ardinoino has described this as "a flight to safety." As noted in a recent X post by Bitcoin proponent Samson Mow, Tether's USDT has seen a major rise in value relative to the Paraguayan guaraní amid the collapse of Ueno Bank, one of Paraguay's biggest digital lenders. Ueno Bank, with an estimated 3 million customers (a major percentage of adult Paraguayans), has been hit by a major financial crisis.
According to Mow, USDT has risen from 5,692 guaraníes to over 6,000 guaraníes, an increase of over 5%. The surge in interest in the U.S. dollar-backed stablecoin USDT, Mow argues, is due to people trying to safeguard their savings outside of the traditional banking system. USDT's exchange rate rose from about 5,692 guaraníes on Oct. It is worth noting that even the traditional U.S. dollar rose against the guaraní over the same period.
