Tether CEO Paolo Ardoino on Monday targeted Ripple XRP/USD CEO Brad Garlinghouse, labeling him “an uninformed CEO” and criticizing his commentary on its stablecoin, USDT/USD, during ongoing SEC investigations and Ripple’s own stablecoin launch.
What Happened: Ardoino’s tweet vehemently defended USDT’s credibility and emphasized its crucial role in global finance, especially in developing regions where traditional banking services often fail to reach the unbanked population.
Ardoino used the platform to underline the stability and reliability of USDT, describing it as key for communities in unbanked regions.
He pointed out that USDT serves as both a transactional and a savings medium, providing essential financial services where conventional banks have not.
“USDT has consistently demonstrated strong price stability, ample liquid reserves, and adherence to high compliance standards with premier custodians,” Ardoino tweeted, countering the negative portrayal of stablecoins and cryptocurrencies often seen in mainstream media.
He argued that such biased reports protect traditional financial interests while overshadowing the substantial benefits that cryptocurrencies like USDT offer to global finance.
Further delving into Tether’s operational practices, Ardoino highlighted the company's rigorous compliance measures, including adherence to OFAC/SDN lists and a robust internal investigation framework that utilizes advanced tools for monitoring market activities.
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Tether's proactive approach is evidenced by its collaboration with 124 law enforcement agencies globally and the use of sophisticated software from partnerships with companies like Chainalysis, he said.
Ardoino noted Tether’s aggressive stance against illegal activities, having blocked over $1.3 billion related to scams and hacks, and approximately $1.6 million linked to terrorist financing.
“Tether has responded to 198 law enforcement requests in the past year alone, significantly collaborating with U.S. law enforcement to block harmful transactions totaling over $639 million,” Ardoino shared, emphasizing Tether's commitment to safety and regulatory compliance.
The CEO also highlighted Tether’s international cooperation, citing strong relationships with entities like Israel's NBCTF and Ukraine law enforcement.
Unlike other stablecoins that often require judicial orders to act, Tether's policy allows for immediate responsive measures to threats and illegal activities.
What’s Next: As discussions about cryptocurrency’s role in global finance continue to evolve, these themes will likely be explored further at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
The event will delve into the impact of regulatory actions, the role of stablecoins, and the technological advancements shaping the financial landscape, providing a platform for critical dialogue on these pressing issues.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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