Exclusive with Paolo Ardoino, CTO of Bitfinex: “Tether believes that it is important that stablecoins have clear rules” – DiarioBitcoin

For Daily EditorBitcoin

Paolo Ardoino, the CTO of Bitfinex Y Tether, answered the questions of the DiarioBitcoin: “Tether undertakes to publish guarantee certificates on a quarterly basis detailing the composition of its reserves.”

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The main stablecoin Tether and its sister company Bitfinex They have been in the eye of the hurricane as of late. In October, for example, they were subjected to a millionaire fine by the Commodity Futures Trading Commission (CFTC) of the United States, one of the main financial regulators in the country. The charges to Tether were related to accusations about the lack of clarity regarding the status of the reserves of its stablecoin, USDT; while the charges of Bitfinex are due to a violation of an order previously issued by the federal agency.

Earlier, in January this year, he was accused of manipulating the price of Bitcoin, which he denied. And the discussion comes from much earlier, in April 2019, the office of the New York Attorney General (NYAG) claimed that Bitfinex used funds from Tether to secretly cover USD $ 850 million lost by the payment processor Crypto Capital. Regarding this in February of this year, companies from the crypto space Bitfinex Y Tether reached an agreement with the NYAG office and both companies paid a total of USD $ 18.5 million.

The complete team of DiarioBitcoin, its CEO; its editors; his head of Marketing, and his editor, who signs this article, asked a pool of questions to the Chief Technology Officer (CTO) of both companies, Paolo Ardoino.

Our doubts focused on answering aspects of these controversies in the United States, but we did not stop there, we also wanted to know more about their future plans.

It is worth noting that Tether it is not only the first stablecoin and the one with the most capitalization market, but also is the crypto with the highest volume of daily exchanges in the world. For example, in the last 24 hours, more than $ 91 billion USDT has changed hands, almost tripling the amount of BTC moved in the same period, according to data from CryptoMarkets.

Opacity or not?

– Unfortunately Tether is the subject of controversy, and has been accused of opacity associated with the management of reserves. What can you tell us about it? How is circulating USDT really supported today?

—All tokens issued from Tether they are fully backed by traditional currency reserves, cash equivalents and accounts receivable. Being the first stable cryptocurrency in the world, Tether has taken the lead on educating the public in this category of digital currencies, has created and taken the first steps in publicizing the component of its reserves, betting on setting standards for a better transparency of the ecosystem. Tether it holds cash which is many times more than its multiples of its largest individual historical redemption and its longest 24-hour redemption period. Even more important, Tether never have a customer turned down their trade-in.

– What is the future of the project in terms of support with commercial papers, will this type of support change?

Tether maintains a solid, conservative and liquid portfolio with an emphasis on safeguarding its reserves. The vast majority of the commercial paper held by the company has been revealed to be rated A-2 or better. Ratings refer to the short-term credit rating of Standard & Poor’s, when available. When a rating is not available, publicly available industry standard conversion tables have been used to convert ratings from Moody’s The Fitch to the equivalent of S&P.

Commercial paper was less than half of the reserves on the last collateral certification date, June 30, 2021. In order to ensure diversified exposure, Tether imposes limits on individual issuers and regional exposure. These limits are in line with the investment policy of Tether and industry practice.

The commercial paper that we hold is acquired through recognized issuance programs. Tether It also keeps cash on hand which is many multiples of the largest historical redemption and the largest 24-hour redemption period. Tether believes that it is important that stablecoins have clear and defined rules for their operations. Ultimately, this protects both businesses and users of the ecosystem.

– What are the plans below and how do you plan to proceed with all the ongoing legal disputes? What are the future measures in terms of transparency?

Tether is committed to operating in a safe and transparent manner, complying with all current laws and regulations. Tether undertakes to publish quarterly guarantee certificates detailing the composition of its reserves, and we work constantly with regulators and law enforcement agencies around the world to assist them in their investigations. We also collaborate with them in the development of the digital asset industry in general.

Where is the CEO?

—JL van der Velde has never sought to be a public figure, he has not disappeared; He works hard behind the scenes to help our clients and does not need or seek prominence.

—Critics of the project point out that Tether’s biggest problem revolves around the centralization of the project. Do you plan to continue in this same way or do you plan to decentralize the operation of the digital currency?

Tether, like the rest of the main stablecoins, is a stablecoin centralized as it is based on banking. While there are many stablecoins “descentralizadas”, are comparatively small. To ensure the full support and liquidity of a stablecoin pegged to the USD, it is necessary to have a basket of assets that are settled in dollars and that can handle the redemptions.

The future

—If the problems make it unfeasible to Bitfinex Y Tether continue to operate institutionally, what will happen to USDT?

—Tether is still the stablecoin more innovative, liquid, stable and popular. We believe that there will continue to be space in the world of stablecoins for Tether in the future.

“How do you see DeFi in the future?” Do you have plans to do something similar to what you have done Binance to launch your own Blockchain and have an ecosystem DeFi/DEX that competes with your CEX?

—Everybody is crazy about him. DeFi, but DeFi it is not necessarily making life easier for everyone. Many try to do essentially the same things over and over again, only a little faster and a little different.

99.9% of people worry about talking to their families around the world. They worry about having a social life. They worry about paying for food, they worry about things in real life. That’s what we care about more than building a DEX.

Tether he prefers to focus on other things like freedom of communication, freedom of money, and equal access to freedom of communication and money.

– Are you considering the launch of a local stablecoin of a Latin American country?

-The stablecoins are utility tokens that provide a stable and efficient way to transfer dollars and other currencies.

Tether It is already widely used daily by tens of thousands of merchants in Asia, Latin America and Europe for remittances, wages and other person-to-person transfers, simply because it makes trading and arbitrage, among other things, more efficient.

Tether It is pegged to several local currencies in addition to the US dollar. Among them is Tether Euro (EUR₮) Y Tether Offshore Chinese Yuan (CNH₮).

– Finally, before the new actions of the SEC, which seek to regulate the issuers of stablecoins as if they were banks … What are the plans? Do you plan to turn your gaze to Latin America, Europe or another continent?

—We welcome regulators recognizing the role of stablecoins in the global economy and their consideration of financial technology innovation in the digital token space. This is the beginning of a much-needed geopolitical debate surrounding the economy. and financial freedom. As more governments debate public policies around stablecoins, Tether you will be prepared to offer the benefit of your success and experience in the field. What Tether created the entire concept of stablecoins, we are pleased to see their growing importance and adoption around the world, and we are prepared to welcome new discussions and policies.

Forum conducted by the team of Daily bitcoin / writing: MR Tabuas, editor.

Image courtesy of Bitfinex

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Exclusive with Paolo Ardoino, CTO of Bitfinex: “Tether believes that it is important that stablecoins have clear rules” – DiarioBitcoin

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