Developing Economies Ignored by Global Financial World
Tether, the issuer of the stablecoin USDT, has criticized a study from the United Nations Office on Drugs and Crime (UNODC) for focusing on the use of the stablecoin in illicit activities. Tether argues that the study fails to acknowledge the stablecoin’s positive impact on developing economies in emerging markets. According to Tether, these markets are often neglected by the global financial world due to their lack of profitability.
Tether Challenges UN Report
In a statement on January 15, Tether responded to the UNODC assessment of USDT, stating that the company’s collaboration with global enforcement agencies ensures comprehensive monitoring of the tokens. Tether emphasizes that the use of public blockchains makes every tether transaction traceable, making it impractical for illicit activities. The stablecoin issuer also highlights the freezing of over $300 million worth of tokens as evidence of its commitment to combating criminal use of cryptocurrencies.
Countering Findings with Token Freezing
Tether counters the UNODC’s findings by pointing to the freeze of tokens worth over $300 million in recent months. The stablecoin issuer sees this action as proof of its dedication to eliminating the criminal use of cryptocurrencies. Tether also expresses concerns about the UNODC’s bias against USDT and urges the organization to engage in a collaborative dialogue rather than attacking the stablecoin.
Tether Calls for Collaboration
Tether urges the UNODC to work with the industry to gain a better understanding of modern strategies to fight financial crime. The stablecoin issuer believes that a collaborative approach would be more effective than solely focusing on the risks associated with stablecoins. Tether suggests that by working together, the UNODC and Tether can improve anti-financial crime efforts and promote a more comprehensive understanding of the stablecoin’s benefits.
Hot Take: Tether Defends Its Role in Developing Economies Amidst UNODC Study
Tether, the issuer of the stablecoin USDT, has criticized a UNODC study for overlooking the positive impact of the stablecoin in developing economies. Tether argues that the stablecoin’s use of public blockchains makes it impractical for illicit activities. The company highlights its collaboration with enforcement agencies and the freezing of millions of dollars worth of tokens as evidence of its commitment to combatting criminal use. Tether urges the UNODC to engage in a collaborative dialogue and consider the benefits of centralized stablecoins in fighting financial crime.
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