Tether is the creator of a stablecoin. This is a token that, unlike bitcoin and other cryptocurrencies, is intended to have a constant value.
Cryptocurrency giant Tether is all set to establish a bitcoin mining operation in Uruguay using renewable energy, as the firm looks to diversify the revenue mix to support its USDT stablecoin.
The company is also looking for “experts in the field” to help it expand into the renewable energy industry. Although mining bitcoin is ignominiously power-intensive, it typically relies on a distributed network of computers globally to verify that transactions are authorised and release new coins into circulation.
Paolo Ardonio, CTO of stablecoin giant Tether, said, “By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining.”
“Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network,” he added.
Additionally, earlier this month, Tether said it would shuffle its treasury management strategy to start investing a portion of its net profit into cryptocurrencies, mainly Bitcoin.
Further, the firm also committed to using up to 15% of its net profit to purchase bitcoin, imitating similar techniques from businesses such as Tesla and MicroStrategy.
According to CoinGecko analysts, Tether’s USDT is the largest stablecoin in the market, with a circulating supply of more than $83.2 billion.
Also, it competes with Circle’s USD Coin and Binance’s BUSD.
Traders use stablecoins to shift money in and out of other cryptocurrencies without having to convert it back into fiat currency.
The firm says that each of its USDT tokens in the circuit is backed 1-to-1 by a similar amount of U.S.-denominated assets held in reserve.
Furthermore, Tether has been admonished in the past, as economists and regulators have questioned the morality of the assets backing its token.
Previously, Tether held most of its assets in commercial paper, a less liquid form of corporate debt. More recently, it has also replaced all of its commercial paper with U.S. Treasurys.
Overall, Uruguay is a leader in renewable energy generation, obtaining more than 98% of its electricity output from renewables, mostly wind and hydropower, according to the US International Trade Administration.
- Published By Team Genuine Reporter