Tether Says NO to Bitcoin for its Synthetic Dollar (aUSDT)! Why?

Tether, a crypto leader, recently 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 support its new synthetic dollar (aUSDT):

Ardoino highlighted that gold is likely the best asset to ensure aUSDT's stability, as it is far less volatile than Bitcoin. "We considered using Bitcoin, but gold is probably a better choice in the short term," he explained. This stability is crucial, especially as the US presidential election approaches, an event that Tether's CEO believes will have a major impact on the crypto industry.

The aUSDT, 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 instead of Bitcoin as collateral for the aUSDT is based on several factors. First, gold has a long history of stability and value, making it an attractive choice for investors seeking to minimize risk. 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 $37 million loss in a single day by Bitcoin ETFs. This instability can lead to significant losses for investors, making gold, with its relative stability, a safer and more reliable choice to guarantee the value of aUSDT.

Tether's CEO's decision to use gold rather than Bitcoin to back 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.