In a recent discussion with CryptoPotato at the 2024 Token2049 Dubai Conference, Paolo Ardoino, CEO of Tether and CTO of BitFinex, shared insights on various subjects including AI, the Bitcoin halving, the rollout of ETFs, USDT's market dominance, and more. Ardoino expressed that stablecoins like USDT are tailored for the unbanked, emphasizing the utility in less developed regions rather than saturated economies like the United States.

During the conversation held not long before the fourth halving of Bitcoin on April 20, Ardoino pointed out that the diminishing impact of the halving event is a result of over 19.5 million BTC already being mined. He noted that the anticipated reduction in Bitcoin production, while significant in the past, now carries less weight due to its predictable nature. Moreover, Ardoino remarked that with Bitcoin reaching an all-time high just ahead of the event, it indicates a likelihood that the impact of the halving may have already been factored into the market dynamics.

Highlighting the emergence of spot ETFs in the US earlier in the year as a game-changer, Ardoino views these developments as highly bullish for the cryptocurrency ecosystem. Citing BlackRock's CEO Larry Fink, he mentioned the current influx of funds from retail investors into these ETFs, anticipating a surge in institutional investment in the near future. Ardoino believes that even a small percentage of traditional hedge funds and institutions engaging with spot ETFs could lead to significant upward price movements for Bitcoin. The easier accessibility provided by these ETFs enables retail investors, previously skeptical or unaware, to participate in Bitcoin investment, albeit through a centralized mechanism.

While recognizing the facilitative role of ETFs in introducing individuals to Bitcoin, Ardoino raised concerns that such products could steer away from the original ethos advocated by Bitcoin maximalists. Despite potential drawbacks, he emphasized the importance of educating new entrants to the ecosystem of the benefits of Bitcoin beyond mere profit motives, stressing its uniqueness as a promising asset.

Contrary to speculations that the launch of Bitcoin ETFs would detract interest from stablecoins such as USDT, Ardoino revealed substantial growth, with USDT's market cap surging by approximately $20 billion since January, now standing at around $110 billion. Trading volumes on Bitfinex, a platform tilted towards institutional clients, also observed significant escalation post the ETF launches. Addressing competition in the stablecoin sector, particularly with the emergence of USDe by Ethena, Ardoino welcomed healthy competition while emphasizing the necessity for users to discern the distinctions among various stablecoin offerings.

In response to the rise of decentralized finance (DeFi) and the exponential growth of stablecoins veering towards that sector, Ardoino clarified Tether's strategic focus: "Tether is associated with DeFi but not dedicated to it. Our primary aim is to cater to underserved markets in developing nations, offering access to the US dollar for individuals marginalized by conventional financial systems."

Discussing Tether's foray into artificial intelligence (AI) endeavors, Ardoino hinted at an intensified integration of AI applications in the stablecoin's operations. Leveraging a portion of the company's profits, Tether has allocated funds to AI ventures following a significant income of $6 billion in 2023. Ardoino revealed that around 10% of these gains were channeled into AI projects, while the remaining sum, $5.4 billion, bolstered stablecoin reserves, addressing prior criticisms. Noteworthy developments include the migration of two primary stablecoins to TON's blockchain, with over 30 million USDT already circulating on the network.