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Tether recently announced a plan to release a digital asset pegged to the Mexican Peso. The company stated that the move would be a big boost for the country because it would provide better access to those who wanted to use the USDT stablecoin.
Tether talks of high demand in Latin America
Speaking during the World Economic Forum, the CTO of Tether and Bitfinex, Paulo Adriano, said that he was interested in showing the full potential of cryptocurrencies and demonstrating how they derived utility in the real world.
“I didn’t participate in Davos to meet CEOs of big banks. We are here to send our message [that] there is a big world out there that needs crypto in a safe way,” Ardoino said.
Tether also noted a rising demand for stablecoins and other crypto products in Mexico. Businesses in the country were especially interested in the crypto space because of the growing demand and level of adoption.
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Tether said that it would create a new stablecoin backed by pesos to fulfil this demand. The stablecoin would be launched on different networks, including Ethereum, Tron and Polygon. Ardoino also said that Bitfinex would start supporting the MXNT trading pairs from next week.
Ardoino further said that USDT was a bridge to the Bitcoin network. He noted that USDT, whose value is pegged to the USD dollar, would be behind the onboarding of 2 billion new users in the crypto market. However, to make more people use the USDT stablecoin, Ardoino said that partnerships with local banks were needed to offer “other flavors of Tether.”
Crypto regulations in Mexico
Ardoino also lightly touched on the crypto regulatory framework. The crypto community has been eagerly waiting to see if Mexico will adopt the use of Bitcoin as legal tender. This came after a Mexican Senator tabled the idea of developing crypto regulations aligning with El Salvador’s Bitcoin law.
Ardoino noted that he was “bullish on the case that many countries will need, sooner rather than later, [to accept] Bitcoin.” However, unlike El Salvador, Mexico could face hindrances in adopting Bitcoin as legal tender. Mexico has an official currency, the peso, while El Salvador used the US dollar.
Ardoino said that while Mexico might fail to adopt Bitcoin as legal tender in the short term, it was highly likely to become an official currency used alongside the peso.
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