Paolo Ardoino, CEO of Tether, stated today that USDT stablecoin adoption in developing nations effectively creates a decentralized market for US debt, positioning everyday people as indirect purchasers of American treasuries through Tether’s reserves.

Speaking at the Bitcoin Policy Institute, Bitcoin for America event, Ardoino highlighted Tether’s significant role in maintaining US dollar dominance globally while simultaneously warning about BRICS nations’ potential challenge to this supremacy through gold accumulation.

The CEO described USDT as serving a temporary “bridge” function in emerging markets where people need access to the US dollar for savings.

Ardoino warned that BRICS nations are actively seeking their “Deepseek moment” against dollar hegemony, referencing how a small Chinese company announced Deepseek R1 shortly after the US announced a $500 billion AI investment. According to Ardoino, this challenge will likely emerge through a gold-backed currency initiative.

However, Ardoino has also said that he believes Bitcoin will ultimately replace the dollar regardless, which is why Tether invests profits in Bitcoin infrastructure development.

“In the long term, I don’t believe there is a future for USDT; I expect a financial reset, where all national currencies will collapse and experience hyperinflation. Consequently, USDT will be completely useless, and at that point, I believe the world will only use Bitcoin,” Ardoino said.

Yet, without USDT promoting the dollar globally and giving access to developing nations, the BRICS nations will end the dollar hegemony.

Recent data supports Ardoino’s concerns about BRICS gold accumulation. The bloc now holds over 20% of global gold reserves, with Russia (2,340 tonnes) and China (2,260 tonnes) leading the alliance’s holdings. Central banks globally have maintained strong gold purchasing patterns into 2025, with the People’s Bank of China adding 5 tonnes in January alone, marking its third consecutive month of net buying.

Gold prices responded to this sustained demand, surging from $2,000 per ounce in early 2024 to nearly $2,800 by December before falling to around $2,200 amid the global trade war with the US. Projections suggest the price could reach $3,100 by the end of 2025.

Jim Rickards, speaking at the New Orleans Investment Conference, outlined how a potential BRICS gold-backed currency might function: “If a BRICS currency unit is worth 1 ounce of gold and the gold price goes to US$3,000 per ounce, the BRICS currency unit would be worth US$3,000, while the dollar would lose value compared to the BRICS currency as measured by the weight of gold”.

Meanwhile, Tether continues expanding its global footprint. Ardoino notes that USDT has surpassed 400 million users worldwide, adding approximately 35 million new wallets each quarter. This growth is particularly pronounced in developing regions with limited banking access, where USDT provides an alternative financial infrastructure.

The Tether CEO maintains that despite criticism from competitors, USDT plays a crucial role in supporting dollar dominance while providing essential financial services to underbanked populations.

However, his long-term prediction suggests this arrangement may eventually give way to a Bitcoin-dominated financial system following what he describes as an inevitable collapse of fiat currencies.