Bitfinex and Tether Navigating Global Regulations and Exploring Emerging Markets: CTO Reveals Expansion Strategies

June 13, 2023

By Murtuza Merchant

Paolo Ardoino, Chief Technology Officer of Bitfinex and Tether has shared insights into the companies’ strategies amidst the evolving global regulatory landscape. 

In an interview with NFTMetta, Ardoino emphasized their focus on monitoring regulations in key markets and engaging with regulators for licenses. 

He discussed the potential in emerging markets where cryptocurrencies can address financial infrastructure challenges. 

Additionally, Ardoino revealed Tether’s diversified growth strategy, which includes investments in renewable energy projects in countries like Paraguay and El Salvador. 

The discussion also encompassed Bitfinex and Tether’s commitment to Bitcoin and the need for regulatory clarity to foster innovation in the blockchain industry.

Bitfinex and Tether are closely monitoring global regulatory developments as they shape their future strategies, Ardoino said, as he spoke about their efforts in obtaining licenses and adapting to regulatory requirements across various jurisdictions.

“We are definitely looking at other jurisdictions. You could see that you would see Hong Kong, Singapore, Dubai, Abu Dhabi…looking at how to properly regulate crypto,” said Ardoino. 

He expressed concerns about regulators suddenly changing their approach, stating, “It is really important to start targeting people. And indeed, as the citizens own, you cannot afford that the rules keep changing.”

Ardoino also emphasized the significance of emerging markets in Bitfinex and Tether’s growth strategy. 

He remarked, “We have been advocating since a long time that the crypto companies should focus more on emerging markets rather than focusing on the US and Europe.” 

He cited the example of Mexico, where 60% of the population is unbanked, and underscored the need for robust cryptocurrency infrastructure in such regions.

On the topic of Tether’s diversification, Ardoino mentioned their investment in renewable energy, particularly in Paraguay and El Salvador. “We released a few investments, especially one in Paraguay and one in El Salvador… reinvesting part of our top dollar where profits have been quite impressive in infrastructure. So the ultimate or real Y strategies are both about building energy infrastructure first, renewable energy infrastructure first,” he explained.

Furthermore, Ardoino highlighted Bitfinex and Tether’s strong ties with Bitcoin. He noted that both companies were founded by Bitcoin enthusiasts and continue to invest in Bitcoin infrastructure and mining. “We are bitcoiners at heart…we are big proponents of Bitcoin and really big believers of Bitcoin,” he declared.

Ardoino shared his concerns regarding regulatory challenges, particularly in the US, where he feels the approach has been more focused on law enforcement than clear guidance. 

“An industry needs clear guidance on…it is just extremely important that we don’t end up in this situation where we, you know, we get regulations that are concerned with the possibility of the blockchain technology to grow and modernize many industries,” he added.

Speaking about the increasing use of Artificial Intelligence, Ardoino conveyed optimism but also conveyed concerns regarding privacy. “We think that there is another issue which is the risk of privacy. So now everyone is giving up…private information to AI,” he stated, emphasizing the need for web3 solutions that safeguard user data.

Ardoino hinted at the growth of commodities-backed cryptocurrencies, mentioning Tether Gold as an example of an asset gaining traction.

As regulatory landscapes continue to evolve, Bitfinex and Tether are keen on adapting and expanding into emerging markets and diversifying their investment strategies. 

With a firm commitment to Bitcoin and an emphasis on clear regulatory frameworks, these companies are navigating the complex global environment while keeping innovation at the forefront.

About the author

Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.

Translate Now