Tether Ditches Bitcoin, Chooses Gold to Back New Synthetic Dollar (aUSDT)

Tether, a leader in the crypto field, has recently launched a new synthetic dollar called aUSDT, backed by gold.

Tether, a leading company in the crypto field, has just 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)

According to Tether’s CTO, Paolo Ardoino, the decision to use gold as collateral for aUSDT is primarily driven by its stability. In an interview with CoinDesk, Ardoino highlighted that gold is less volatile than Bitcoin, making it a more suitable choice for ensuring the stability of aUSDT.

“+We considered using Bitcoin, but gold is probably a better short-term choice,+” he explained.

This stability is particularly important given the upcoming US presidential election, an event that Tether’s CEO believes will have a major impact on the crypto industry.

The aUSDT, which was 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.

First, 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 substantial losses for investors, making gold, with its relative stability, a safer and more reliable choice to guarantee the value of aUSDT.

The decision by Tether’s CEO 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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