Tether has revealed its plans to have the USDT stablecoin available in more than 24,000 ATMs across Brazil. USDT is the largest stablecoin globally by market cap.
USDT to launch in 24,000 ATMs in Brazil
The CTO of Tether, Paolo Ardoino, commented on this development saying that the limitations and difficulties caused by inflation and the lack of inclusivity in the financial system have made many Brazilians unable to be part of the buzzing economy.
“Adding Tether tokens to ATMs across Brazil provides the opportunity to include more people in the financial system,” Ardoino said. Users of ATM devices across Brazil will manage to convert Brazilian reals into USDT or convert the stablecoin into fiat while supporting USDT payments globally.
Ardoino said the move would attract major changes within the payments sector and the global Brazilian financial ecosystem. The initiative is part of the plan by Tether to expand its presence in South America.
The USDT stablecoin issuer partnered with SmartPay, a Brazilian payments company, to expand its regional presence. The partnership supported the integration of USDT with the PiX payment system and the largest ATM provider in Brazil, TecBan. The initiative will be released on November 3.
Cryptocurrencies, including stablecoins, have become quite popular in Latin America recently. Customers have been attracted to these crypto assets because of their accessibility and the utility they provide as a store of value. Stablecoins have also been deemed less volatile than these countries’ national currencies.
Stablecoins are pegged to the values of real currencies, such as the US dollar. The stablecoin issuers maintain reserves to collateralize these assets, with the reserves being audited by different regulatory bodies. This has made the assets gain use as financial products that offer autonomy while providing stability.
USDT is the world’s largest stablecoin, with a market cap of more than $68 billion. The stablecoin is used by consumers looking for a stable store of value. It is also used by crypto traders that want to exit trades without selling their crypto holdings for fiat.
Over the past year, the economy of Brazil has been under pressure. September was the first time since June last year when inflation dropped below 9%. In 2021, Brazil relied heavily on stablecoins.
Tether’s dominance grows
Tether’s global dominance has expanded over the past year, with the stablecoin issuer taking several steps to grow its transparency and appear more reliable to users. Last week, Tether announced that it had reduced its commercial paper holdings to zero, with the holdings being converted into US treasury bills.
This change was likely attributed to the efforts made by regulators in the United States to regulate stablecoins. These regulators had turned their attention to the stability of Tether’s reserves.
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