Tether says NO to Bitcoin for its synthetic dollar (aUSDT)! Why?

Tether, a leader in the crypto space, recently launched a new synthetic dollar called aUSDT, backed by gold. This strategic decision came at the expense of Bitcoin, due to several concerns.

Here's Why Tether Is Using Gold to Back Its New Synthetic Dollar (aUSDT)

Ardoino pointed out that gold is probably the best asset to guarantee the stability of aUSDT, as it is much less volatile than Bitcoin. “We have considered using Bitcoin, but gold is probably a better choice in the short term,” he explained. This stability is crucial, especially with the US presidential election approaching, an event that the Tether CEO believes will have a major impact on the crypto industry.

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 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 risk. Additionally, gold is widely recognized and accepted as a store of value, which increases users’ confidence in aUSDT.

Bitcoin is losing ground!

Despite optimistic forecasts of $50,000, Bitcoin remains subject to significant fluctuations, as evidenced by the recent $37 million loss in one 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 back the value of aUSDT.

Tether CEO’s decision to use gold instead of Bitcoin to back the new synthetic dollar aUSDT marks a significant milestone in the evolution of digital assets. By choosing gold for its relative stability, Tether offers an innovative and secure solution for transacting and managing assets in the modern digital economy. This move could well redefine how digital assets are viewed and used in the future, with a focus on security and reliability.