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Tether, a leader in the crypto field, has recently launched a new synthetic dollar called aUSDT, backed by gold. This strategic decision was made at the expense of Bitcoin due to several concerns.
Here’s why Tether is using gold to back its new synthetic dollar (aUSDT)
Ardoino stressed that gold is probably the best asset to ensure the stability of aUSDT, as it is much less volatile than Bitcoin. “+We considered using Bitcoin, but gold is probably a better short-term choice,+” he explained. This stability is crucial, especially with the upcoming US presidential election, an event that the Tether CEO believes will have a major impact on the crypto industry.
The aUSDT, introduced in June, is over-collateralized by Tether Gold (XAUT) and is part of the new Alloy by Tether platform. Tether’s decision to use gold over Bitcoin as collateral for aUSDT is based on several factors. Firstly, gold has a long history of stability and value, making it an attractive choice for investors looking to minimize risks. Additionally, gold is widely recognized and accepted as a store of value, which strengthens user confidence in aUSDT.
Bitcoin is losing ground!
Despite optimistic forecasts aiming for $50,000, Bitcoin remains subject to significant fluctuations, as evidenced by the recent loss of $37 million in one day by Bitcoin ETFs. This instability can lead to significant losses for investors, making gold, with its relative stability, a safer and more reliable choice to guarantee the value of aUSDT.
The Tether CEO’s decision to use gold rather than Bitcoin to secure the new synthetic dollar aUSDT marks a significant step in the evolution of digital assets. By choosing gold for its relative stability, Tether offers an innovative and secure solution for transactions and asset management in the modern digital economy. This initiative could well redefine how digital assets are perceived and used in the future, emphasizing security and reliability.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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