Tether Allows Individuals To Skirt Capital Controls More Than BTC

Tether allows individuals in Hong Kong, to skirt capital controls more than Bitcoin does, despite being considered the only way that anybody in the world can rely on to do that. However, in today’s Tether cryptocurrency news, we are reading something otherwise.

Hong Kong has become a volatile region because of the political uncertainty as the narrative formed an opinion that wealthy people are moving their capital out of the country through Bitcoin. In Lebanon, citizens are facing a devaluing currency and they also turned to Bitcoin as a way out. However, according to one analyst, Tether allows individuals to skirt capital controls more than Bitcoin does.

Tether is freedom.

Has probably done the same or more to circumvent capital controls as BTC so far.

Still, it would be wrong to conclude we don't need BTC because Tether doesn't have the same level of state-resistance and immutability. https://t.co/lwOe30Es2s

— Hasu (@hasufl) August 25, 2020

Hasu, the prominent crypto analyst argued that USDT could be playing an even bigger role than Bitcoin in allowing the individuals and countries to bypass capital controls. He cited the data from Chainalysis that reported that there’s more USDT sent to addresses tied to the East Asian entities than BTC. If an address receives capital during the East-Asian waking hours or it is connected to exchange in that region and it is classified as an East Asian Address.

Chainalysis also noted that there is around $50 million worth of USDT sent into the West or other places every day. this could be a sign that the Chinese capital flight was actually conducted in the stablecoin. The company included a quote from Tether’s CTO Paolo Ardoino:

 “Tether tokens are neither a panacea nor a replacement for fiat. Instead, use cases have organically grown where traditional financial assets have been found to be lacking… The fast settlement, deep liquidity, low fees and stable price associated with tethers have created unique opportunities for… safe havens for people in jurisdictions with less stable fiat currencies.”

Hasu says that the Chainalysis data shows that the coin is a dominant force in skirting capital controls but this is not to say that Bitcoin is not needed:

 “Still, it would be wrong to conclude we don’t need BTC because Tether doesn’t have the same level of state-resistance and immutability.”

USDT’s market cap is swelling because of the many trends including the exponential growth in the DeFi space and the increase in demand of US dollars, as well as the increased activity in the crypto market.