On Friday, Ukraine Vice Prime Minister Mykhailo Fedorov urged Tether and Chief Technology Officer Paolo Ardoino to halt all interactions with Russians via Twitter.
“Tether performs continual market monitoring to ensure that there are no abnormal movements or measures that would be in defiance of international sanctions,” it said in a statement to CoinDesk.
The approach appears similar to that of cryptocurrency exchanges Coinbase and Kraken, with both resisting requests to cancel all Russian accounts. They are both committed to not allowing any circumvention of Western sanctions.
Fedorov’s reference of Tether in particular, according to Bloomberg, shows that big Russian businesses may use USDT to transport funds out of the country. Tether was once used to transmit funds internationally. It is then exchanged for other cryptocurrencies, such as bitcoin.
Ukraine needs to understand that cryptocurrencies are all about decentralisation. Russians will continue to use exchanges such as Binance, Coinbase, Fomo Dex, and UniSwap.
It is known as a stablecoin because it was created with the intention of always being worth $1.00, with $1.00 in reserves for each tether issued.
It accounted for roughly 10% of bitcoin trading activity in early 2018, but by the summer of 2018, it had increased to close to 80% of bitcoin volume.
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