Tether, the startup behind USDT, one of the most widely used stablecoins, announced the creation of a new currency pegged to the Mexican peso on May 26. The token is intended to increase the company’s visibility and impact in Latin America.
Tether’s decision to introduce MXNT, a token connected to the Mexican peso, appears to be a positive move. According to the Triple-A agency, roughly 40% of Mexican businesses want to adopt blockchain technology and cryptocurrencies into their operations, according to research quoted in a Tether press release. When we go deeper into the numbers, we discover that barely 2.5 percent of Mexico’s 130 million population holds cryptocurrency.
The potential for Mexico to become a complete Latin American crypto powerhouse is undeniable. Mexico will be effective in supporting the multi-billion-dollar flow of payments into the country by adopting and using stablecoins tied to the national currency. This will allow for a faster and less expensive transfer of assets.
CTO Paolo Ardoyno commented on the event, saying that the growing use of cryptocurrencies in Latin America necessitated the expansion of the stablecoin and that MXNT, in turn, can reduce volatility for people wishing to convert their assets and investments from fiat to digital currencies. It’s a win-win situation for both parties.
Consistent world of Tether
MXNT is an addition to the stablecoin’s storefront’s fiat-currency-linked stablecoins. Pegged to the US dollar USDT, pegged to the euro EURT, and pegged to the Chinese yuan CNHT, the peso-pegged token joins the ranks of the USDT, EURT, and CNHT tokens.
This range is undoubtedly impressive, but Tether’s internal issues have placed a pall over the company’s good news. As a result, earlier in May, amid investor fear, USDT lost its 1:1 peg to the dollar and traded at a discount to the market for some timeperiod of time. Tether’s reputation worsened even after the audit certifying the viability of the company’s reserves was published.