FinTechON｜Tether Vice President: Taiwan Supply Chain Becomes the Best Application Scenario for stablecoin

Tether's Compliance and Licensing Business VP Giles Dixon fully shared the development context of stablecoin (Stablecoin), Taiwan's role in the global Supply Chain, and the challenges and opportunities under accelerated international regulation at the FinTechON & AFA summit on September 1. He emphasized that stablecoins are no longer just investment Arbitrage tools, but important solutions for cross-border trade, payments, and inflation resistance.

From Arbitrage to actual payment applications, stablecoins are rapidly expanding.

Dixon first reviewed that the initial issuance of the stablecoin USDT by Tether was merely to overcome the difficulties of fiat transfers between exchanges, making it easier for investors to quickly arbitrage.

However, as time goes on, the use of stablecoins is gradually expanding, not to compete with banks, but to provide value in areas with inadequate infrastructure or low efficiency. He cited examples where in Argentina and Turkey, people use USDT to counter currency devaluation. In some regions of Africa, the middle class relies on USDT for low-cost cross-border payments. He stated:

In areas lacking financial infrastructure, stablecoins are the most practical solution.

Dixon pointed out that Tether has grown from 0 to a market value of 167 billion USD, with approximately 450 million global users and an addition of 20 million new users each month. This indicates that the demand for stablecoins truly exists, and the rate of diffusion is continuously accelerating.

Taiwan Supply Chain is the best application scenario for stablecoin

Dixon emphasized Taiwan's role in the global Supply Chain. He pointed out that there are still 3 billion people worldwide without bank accounts, but these individuals still want to purchase products and services from Taiwan. If stablecoins can be used for settlement, it would not only reduce friction and the risk of trade disruptions but also prevent market loss.

He reminded that even if only 1% of cross-border trade is lost due to payment difficulties, it would be a huge loss for Taiwan. Stablecoins are not just a replacement, but an expansion of new opportunities and possibilities.

Taiwan has advantages in remote work, and stablecoins can solve the challenges of cross-border payments.

Dixon shared his experience of being unable to pay 3,000 pounds at a store in the UK due to a card being declined, highlighting that payment difficulties are common among businesses of all sizes.

He added that if 25% of global tourists spend $100 less due to payment inconveniences, countries will lose hundreds of millions of dollars in tourism revenue. He also observed that Taiwan, as a hub for remote workers, often sees professionals facing delays in receiving payments and high transaction fees. By introducing stablecoins, not only can time and costs be reduced, but it can also directly improve household income and business efficiency.

As the global regulatory wave rises, it pushes three major directions for Taiwan to consider.

Dixon emphasized that 2025 is the "first year of stablecoin regulation," as various countries have begun to establish regulations. Europe's MiCA has been implemented, the U.S. has passed the GENIUS Act, and Japan, the UAE, and the UK are also actively promoting regulation. He believes that the common goal of regulation is to "ensure consumer safety" and "establish market trust," thereby attracting more institutional investors to participate. For Taiwan, it is an opportunity to observe the experiences of other countries and formulate regulations that suit its own needs. He suggested three directions:

Establishing Trust: Regulation is the foundation of market trust.

Promoting Innovation: Clear regulations can allow the financial and technology industries to develop with confidence.

Global positioning: Competitive regulation will attract international capital and enterprises.

Finally, Dixon concluded with the model of Tether, stating that users can deposit 1 dollar to exchange for 1 USDT, backed by USD reserves to ensure a 1:1 peg. This involves asset transparency, reserve management, and redemption capability, which are also the most concerning issues for global regulators.

Tether VP emphasized that the supply chain in Taiwan is an important application scenario for stablecoins.

This article FinTechON｜Tether Vice President: Taiwan's Supply Chain is the Best Application Scenario for stablecoin first appeared in Chain News ABMedia.