What’s Next for USDT?! Interview With Tether CEO!

In the last few years tether has become One of the most important entities in The crypto industry the stable coin Issues usdt recently saw its market cap Pass a100 Billion making it over three times Bigger than its nearest rival it's fair To say that USD is a fundamental Component of the crypto Market with most Coins and tokens trading against it but Tyler itself is aiming to become much More than just a stable coin issuer as It moves into Bitcoin mining and other Ventures the company recently appointed Its Chief technology officer Paulo uino As its new CEO and I cut up with Pao Here in Dubai this was just ahead of the Announcement made by Pao and telegram CEO pav durov that the ton blockchain Would begin supporting usdt payments for Telegram users needless to say I had a Lot of questions to ask Paulo and here Is what we Discussed so great to see you here thank You so much welcome to Dubai thank you And thank you for having me of course Co Are very excited to have a chat with you So starting off there is plenty that we Can discuss today but I think starting Point is teller has gone from being an Industry Outsider to being Systematically important within our Ecosystem do you think that should give You a seat at the table when it comes to

Being part of the conversation with Regulation and also a voice in policies Not just for stable coins but for crypto Also so we our have been working with Regulators all around the world for for Many years already so as a a new Industry the crypto industry started Well with Bitcoin 2008 and now has been Growing first slowly and now is I think Um out of the closet with the Bitcoin ETF it's clear that the fourth phase of Acceptance right first you know they Ignore you then they mock you then they Attack you and now they accept you and The Bitcoin ETF is acceptance um is um Shows how an industry can grow and can Grow really fast as has happened to us But at the same time um as for any Industry to reach Mass adoption and Being understood and used by the large Public is important regulations are Important so we have been working with The Regulators all around the world for Many years some have been more receptive Others less receptive um not only for Stable coins but also for crypto Regulations in general we believe that Is important given our position to be Helpful to the industry we truly believe In the concept of the this Intermediation so the ability of people To be their own bank the ability of People to keep their wealth on their own Smartphone if if if they want so uh this

Um this type of um information and type Of um um explanations are really Important for lawmakers that not always Are up to date with the latest Developments in technology so sometimes They they They they don't understand you know the How people can transact freely through Bitcoin on on a blockchain and uh you Know what are layer twos I mean there is There are so many B wordss that we Create for ourselves and we complicate Our life because when we have are going Outside of our small bubble in in sense Not bubble not in a bad way but small Close group it's harder and harder to Explain what we are doing why that is so Important to people that are not so deep In in in in technology and you mentioned You have a really open dialogue with Regulators so if we look at maybe the Last year for example we're not focus on Any of The Regulators maybe that could Be doing it better but is there any Conversations you've had which have left You really positive for the Incorporation of USD or also just stable Coins cryptocurrencies in general with Regulators that come to mind so we are Seeing here in Dubai there is definitely A positive conversation and U we are Entertaining that and the another place That I truly love is el salador el Salador the Bitcoin country now has

First started um working and and Delivered um on on um digital asset License um that bitfenix and other Company that I represent was able to Obtain and now they are rolling out the Stable coin license I think that small Boutique countries that are more agile And more able to move fast and um and Leverage their position to gather and Attract Talent attract Investments you See in Dubai I mean there is there is a Lot of crypto crowd um there is a Concentration of wealth also thanks to The crypto industry right so of course Not sometimes not everything is perfect Like I'm not a big fan of um the coins With the dog uh face on top of it but For the rest I'm um I think that there Are much more positives than negatives So that's what many um uh Regulators are Seeing around the world seeing also Singapore now and and Kong are looking To um good and positive crypto Regulations and you mentioned Al Salvador there I have to ask you about Your plans for Bitcoin mining across Latin America so talk us through some of The the plans that you have so the Common threat at T is um Decentralization and this intermediation With um with uh usdt we achieved the This intermediation of payments and Remittances right so now we we live we We are living in a world where for many

Countries Emerging Markets um sometimes More than 10% of the GDP is Remittances imagine all the people Sending money back home working in um Maybe in Europe or us sending money back Home uh you are charged 15% just to move A ledger in a in a centralized database That is completely unfair right so I Think uh the this intermediation that we Made with USD is enormous when it comes To finance but the concept of this Intermediation can happen in many other Fields so when it comes to um Bitcoin Mining our concept is that this Intermediation and decentralization are Important also in our industry and to Sustain our industry Bitcoin mining was Extremely centralized in China up to 2019 the Chinese government bonded Bitcoin mining then Bitcoin mining moved To uh the vast majority moved to the US Of course the US is more open than China But at the same time is it good positive For the industry that such a Concentration is in one single Geopolitical location what if the energy Grade of Texas uh falls apart and for Many reasons that could happen we will Bitcoin will suffer suffer from them it Will recover for sure but shouldn't we Companies in the Bitcoin industry and Ecosystem try to prevent that trying to Reinvest part of our resources in Helping more countries to understand the

Beauty of being part of the most Important currency ever created in this World so that's what we are doing with Els salador with uguay and Paraguay we Are establishing um mining Farms there Focusing on renewable energy usage the Beauty of El Salvador is that they have 70 volcanos they can uh they can use the Geothermal energy in um in order to Extract uh energy and and do Bitcoin Mining extremely clean um it's it's a Process that of course takes a bit of Time because Drilling you know 1 Kilometer in the soil is not is not that Fast compared to install couple of solar Panels but is a story of commitment that The country has made to support Bitcoin Not only for from a currency perspective But also from decentralization and Mining Perspective so ma'am where exactly were You on the night of the murder I was Right here to detective all night long You got anyone who can back that up you Mean an alibi yeah that's one no I was All on my lonesome and what exactly were You doing all on your lonesome if you Don't mind me asking well keeping under Your hat detective but I was looking Through the coin Bureau deals page What's a coin Bureau deals page when It's at home it's only the place where You'll find the best discounts and Promos in all of crypto what do you mean

I mean trading fee discounts of up to 60% and sign up bonuses up to $60,000 on Some of the best exchanges holy smokes They got discounts on Hardware wallets Too by any chance they sure do detective Like you wouldn't believe well that sure Sounds kind of swell lady but just you Give me one good reason why I should Believe a single word you say you don't Have to take my word for a detective Take a look at the link down below and See for yourself she wasn't kidding Those deals really were something else Turns out that crypto ain't such a bad Place after all you just got to know Your way Around and the the profitability the Business model of tether I mean if we Look at kind of Q3 Q4 earnings very Impressive what other business pillars Could we expect to see that maybe in Pipeline we've touched on Bitcoin mining Is there anything else so we have um Been working on um other pillars right So first of all I want to make it clear That um the the Bitcoin mining and Everything that we do all the Investments are outside of our reserves So T today is um at 109 billion Market C Stable coin on top of that t last year As you said was a great year for us we Had a profit of 6.2 billion doar someone Says that we are probably the most Profitable company per per person that

Works there but um we kept the vast Majority of the these assets and these Profits inside the reserves of usdt why Because we want to demonstrate that Finance can be Different we see the banking industry That is uh Um running on fractional Reserve we see How they can L out up to 90% of their Balance sheet so it means that if they Have a Redemption more than 10% they go Bell up we have seen that with Silicon Valley Bank cure silvergate right so It's it's and credit swis yeah so we Want to show how we are built Differently now in um with Usdt we um on top of we have the Reserves we have five billion more that We kept in the company out of the Profits of six billion that we made last Year in profits and then with the Remaining billion plus that we earned we Are investing different pillars the Bitcoin mining we talk about um then we Are we investing in peer-to-peer Communication Suites and uh and Artificial intelligence so but the way We we invest in in in a projects and and Ideas is slightly different or quite Different actually from the classic VC The classif VC would look for the best Opportunities to make um the highest Return uh possible we invest in in Things That Go um in on the same Pace

They have the same ethos the same Philosophy for example when it comes to Um uh freedom of communications freedom Of speech that is something really at The core of our mission yeah as Bitcoin Brings Financial Freedom we believe that Um if you have Financial Freedom and you Don't have freedom of speech your Financial freedom is useless so we built We invested and built um platforms like H punch and uh and kit that is a Communication suit that shows how you Can build completely decentralized Communication applications like imagine Bit torrent for communications rather Than just file sharing uh to to to Provide the same features the same Expectations terms of Resiliency uh that Bitcoin brings on the Financial W but also communication Bo on The artificial intelligence side we um And by the way the peer-to-peer Investment the peer-to-peer Communication investment is really Important because goes to the this Intermediation of um of uh of Communications we know we we made the Example USD this intermediation of Finance uh kit whole punch um our Peer-to-peer concept this intermediation Communication with artificial Intelligence we are planning to do the Same we have of course tens of and Hundreds of companies that are cont

Acting uh us to invest in their new Large language model or you know their New ideas but for us the common Denominator of all thei world is the Infrastructure so we invested in Northern data that is um one of the uh Companies that have the majority Allocation of um AI chips gpus because We have all seen what um happened with Gemini 1.5 or with um open Ai and debate That was between Elon Musk and Sam so There are all these um issues of Concentration of power in few companies That are using technology to express Their political agenda yeah so we we are Against that we believe that um there Should be a fair access to also AI Infrastructure so we want to build that Uh within tedar we want to create tools That allow AI companies that need to Have access to gpus to uh computer power To have that type of access without Being subject to the political belief of The few small few big tech companies That own the majority of the eye chips Uh we are um we recently have been uh Investing also in biotech we believe That um it's important for a company Like T to give back to the community not Only the crypto Community but I I said It in a speech previously I feel like we Have been extremely lucky I wish I was Able to tell you that um the 109 billion Market cap was reached because we are

Perfect the most intelligent people in The world and we are extremely beautiful Actually it was it happened because we Created a product that is extremely Useful we didn't even have a marketing Team up to 2022 so the the what was achieved in Terms of distribution is is because the Product is simple everyone can Understand it right it's just Dollar on Blockchain how how can more simple than That and so we feel that is in our duty To reinvest in Technologies um that Protect Bitcoin through mining Artificial intelligence is going to be One of the most important uh discussions In the future uh it will be um extremely Um crucial to see how it will change People lives for the best for the good And worst uh in the future but also Biotech is also important right there Are many good companies that need Funding that uh that have great products That can improve people lives today Right there are there are many of them And so we believe that you know we we Don't need to buy a a yacht for us right So we we keep the vast majority in the Company so that we can keep building we Can keep providing support to the great Enterprises of of this industry and Outside of the industry and now when it Comes to because you mentioned there Some of the reasons for tether success

And I think a lot of it is because of Maybe pain points with the traditional Financial system if we focus a a bit More now on the eu's upcoming regulatory Policies that are coming up how do you Think that is going to impact usdt in Europe um I've been so tar has been Working with European regulator and Lawmakers for quite some time we had Open discussions and uh first of all we Support regulatory initiatives in General but I think that there with the Specific M license there are some Regulatory concerns uh that we Have the main one is that when you run a Stable coin the most important thing is That you need to be able to give back The money at any point in time to all Your user base the MAA license requires For a small stable coin to keep 30% of Uh its assets and for a big stable coin Like us 60% of his assets into cash Deposits in a bank and one could could Say well of course you have to have cash Deposits that is what is expected Actually cash deposits are dangerous we Have seen what happened with our main Competitor 2023 Silicon Valley Bank they Had 3.3 billion dollar in uninsured cash Deposits the problem with cash deposits Is that they are uninsured in the US up To $250,000 in Europe up up up to € 100,000 if you have 1 billion 2 billion 3 billion 5 billion

In a bank account you know 100,000 EUR Don't don't don't break the buck so um The issue is that if there are cash Deposits in a bank and the bank goes Bankrupt you lost everything you have to Go through the bankruptcy process to try To get something out of it and we also Have seen how many bankruptcy processes Are leaving leaving all the creditors Hanging how we can solve that solving That is easy is what we are doing with With usdt our plan with USS to be 100% Us treasury bills we should be able to Do the same thing in Europe so if you Have treasury bills from the Central Bank means that you expect the Redeemability of those treasury bills One to one for the underlying currency They provide a little bit of Interest so You can cover the operations and that is The safest thing because if you put These treasury bills in a bank and the Bank goes bankrupt you can take back you Will be assigned back uh these Securities you move them in another bank So that is extremely concerning to me Because the banks can land out if you Have uninsured cash deposits in a bank The banks can lend out up to 90% of the Assets of their Bal in their balance Sheet and so if you have an insure cash Deposits that goes in the balance sheet They can lend out 90% so imagine if we Had $19 billion in a European bank and

That bank in cash deposits and that can Bank could lend out 100 billion out to Someone that we don't know about and the Problem is also is that if there is a Bankr on the bank that holds the Uninsured cash Deposits the they can sustain up to 10% Because they lend out 90% so it means That if someone is asking to stable coin More than 10% of redemptions we we the The stable coin would cause the bank run Because the stable coin would require More than 10% back and the banks will go Belly Up and the banks are already Failing I was again silon Valley Bank And silvergate and credit SS so I think The only solution is actually to keep Everything in um in uh in in treasuries Of the central bank so we are trying to Explain that I believe that um all any Stable coin that is uh that wants to Reach a meaningful size and is planning To to keep such an big amount of an Insure cash deposits the community Should be really beware from That teder usdt is been used by 300 Million people around the world in Emerging Markets developing countries we Cannot with all our heart to put at risk Those people those 300 million people That are not in Europe they are not in Us they are not they don't have other Options right in Europe in US you have Credit cards debit cards the best

Banking best banking rails whatever but Those those 300 million people are Living in countries that are left alone By the banking system we will not put Them in danger um if the regulator will Ask us to keep an insane amount of Insane percentage of our funds in cash Deposits and now if we look ahead to the Future of stable coins if we look at the Last kind of you know truly Decentralized stable coin for for better Words it was an epic failure do you Think there is room for a truly Decentralized stable coin on the market And if so how would that impact hether So this is an an interesting point of View because um there's a lot of Competition and we like competition Because without competition we cannot Call the stab coin industry an industry Right we would just be usdt and so Regulators will not take you seriously If you don't have an industry if you're Just a company and you have full Monopoly now we have seen other stable Coins synthetic stable coins algorithmic Stable coins coming out the the issue With the fully decentralized stable Coins is that why they're trying to Create a stable coin so let's ask Ourselves why we we want a stable coin Because if we want a dollar stable coin Why we want that because if we wanted to Have the best currency in the world that

Is always um that is resistant to the Wrath of God that is extremely resilient That is uncensorable you have Bitcoin so Bitcoin solves all your Problems in that Sense but if you want a dollar in your Pocket right and you want to spend a Dollar in your pocket you surely want to Make sure that if you have something That is represented Dollar in your Pocket you can always convert to a Dollar right at some point So how a a decentralized stable coin can Only do that through some algorithm Mechanisms that will inevitably fail Because the only way to ensure that you Can pay out a dollar for a dollar or for One1 doll worth of stable coin is that You have banking so the moment you start Having banking how centralized or Decentralized you can be right so either You are just a currency that try to Mimic a little bit the dollar but it's Not then a dollar is not a stable coin Because then it's volatile because it Cannot be pegged to the dollar because You don't have banking or you can you Just use something Else and finally then because we've We've covered a range of topics from the Outlooks for future business Diversifications between with tether and I'm really curious to hear tether in 5 To 10 years time what is your vision for

The entity and also where you see Your Role Within These Entities so in 5 10 years I think we Have we are going to open many more Avenues for us um again the the Financial pillar of Teta will remain I Think will keep growing there is a well Unfortunately or well fortunately for us But actually unfortunately for in General for for for for the world um I Don't see inflation uh going down Anytime soon I see many countries still Being heavily subject to Uh a fast Dee depreciation of their National currency so what will happen is That it's known that um the US economy Is printing $1 trillion dollar every 100 Days right so there is space to grow on All the financial sector of T but what I Really do care about is is continue on This diversification avenues that bring Our culture our mission our mindset uh Of decentralization this intermediation To all the possible sectors we announce Our educational effort Um and when a cryptocurrency company Works on um or announce something Related to ucation usually people expect Oh you are teaching me blockchain you Are trying to sell me your product and So on actually I think that with the Pandemic education has been has shown How it can be revolutionized and become More and more digital so I think that um

With tedar we are building investing in Um in um in different areas to make make Sure that education can be um available Online if you want to be a plumber if You want to be an electrician if you Want to be anything in this word you Should be able to find the best teachers And have the best tools to learn so that Is where we are investing so I think That tar will become the the brand that Will support all these initiatives we Have this new motto called Unstoppable Together and our concept is that we are Still individuals we are everyone is is Is his own person right Um but at the same time we are a Community we we form cities we form Countries so the products that we want To build need to empower the single Person as the local community as an Entire city as an entire country as an Entire world so we start small we want To connect people but we want to do it In a way that removes all the pain Points and the inter unnecessary Intermediation as much as possible in All the fields that we can well reeling Off some of the numbers that you've Mentioned today it's an impressive feat So thank you so much for the time today It was a pleasure to talk to you and I Hope you enjoy the rest of the Conference thank you for very much for Having me and definitely I will go and

Have a nice coffee you have earned the Coffee thank you so Much that was my conversation with Tyler Co Paulo uino one of the busiest and Most important people in crypto right Now my thanks to Pao for taking the time To speak with me and his team for Helping to make it happen I hope we can Resume the disc discussion in the near Future because there are plenty more Questions that I would like to ask him If you enjoyed this video then don't Forget to like And subscribe and if You're looking for some of the best Deals in crypto then check out our deals Page below it's got trading Fe discounts Of up to 60% and bonuses of as much as $660,000 the link is down below thank You so much for watching and we'll see You all again very soon [Music]


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