Tether has announced that it is introducing new peso-based stable coins on Ethereum, Tron, and Polygon as 40% of Mexican companies are considering blockchain adoption.
Currently, the largest stable currency is USDT, with a market cap of $73.28B, coming up from the recent fall of Terra (UST) with some injuries, touched the $ 0.95 mark, and is now ready to receive a Mexican version of it. MXNT, the new stable currency issued by Tether, the company behind USDT, is issued in Mexico, where 2.5% of the population owns cryptocurrency and 40% of companies are interested in blockchain and cryptocurrency.
The MXNT will be pegged with the peso at a price of $0.051. “The introduction of the peso-pegged stable coin will add value to all the emerging markets in the region, especially in Mexico,” said the chief technology officer of Teather Paulo Ardoino.
As per research, the majority of cryptocurrencies in Mexico are used for speculation and trading. Since large-scale inbound payments and difficulties in the money transfer process from the U.S, cryptocurrency and blockchain-based technology have become an attractive proposition for Mexicans.
“MXNT reduces the volatility of those who want to convert their assets and investments from Fiat to digital currencies.” Tether believes Mexico is a testament to the widespread acceptance of stabilisation in Latin America. “Last year we saw an increase in the use of cryptocurrency in Latin America, which made it clear for us that we need to expand what we are offering,” Ardoino said in a statement. The company already has Euro and Chinese Yuan-pegged stable coins. Unlike Bitcoin, the dollar reserve supports fixed currencies.
All of this was honoured after Tether’s corporate paper stock reserves were transformed into high-quality assets of short-term government debt due to the recent Terra Stablecoin Meltdown which led to $10B worth of USDT withdrawals. According to MHA Cayman, an independent lawyer for the UK-based MHA’s satellite agency MacIntyre. The accounting firm authorities raised the alarm on Tether’s commercial paper stocks which were 31% last July, and have now reduced it to a quarter in March this year. MacIntyre. Before this Tether was imposed a $41M fine by the Commodities and Futures Trading Commission (CFTC).
Reserve helps to prevent ‘bank run’ situations for issuers of stablecoins and further redeem stablecoin for fiat currency. Last week, Ardoino supported and defended Tether’s side, while saying, “Tether has maintained its stability through many Black Swan events and thus has never failed on redemption requests.