A CoinDesk survey in Russia revealed that Chinese importers in Russia are using USDT to quickly transfer funds.
Tether’s most popular stable cryptocurrency app allows crypto traders to quickly move money between exchanges to take advantage of arbitrage opportunities. But according to several Moscow OTC traders, it has at least one real use case – remittance service for local Chinese importers.
Utility for Tether – $ 10-30 million daily
The total volume of USDT purchased by Chinese companies ranges from USD 10-30 million daily, according to the OTC traders’ statements.
“Importers accumulate a lot of cash in Moscow and need Tether to transfer to China,”
said Maya Shakhnazarova, head of OTC trading at Huobi Russia. This is the local branch of the Huobi Global exchange.
They use the cryptocurrency USDT to send large amounts back to the country of origin, which has strict capital controls. Previously, traders used bitcoin, but with the 2018 price crash, they switched to USDT, which has parity with the US dollar.
It does not matter if the tether has USDT coverage
Shakhnazarova explained that the transfers are very easy:
“A customer comes with cash, we negotiate the price and we close the business. The client hands over the cash and a wallet address, the seller sends USDT into the wallet. “
USDT has the advantages of cryptocurrencies. Without limit to how much money can be sent or where – and it has no volatility that affects the price of Bitcoin.
Despite the controversy over Tether’s dollar reserves on this market “No one cares if the USDT is guaranteed or not”, explained Konstantin Plavnik, the operational director of the Xena exchange in Moscow.
This utility for Tether will help the cryptocurrency to survive regardless of the issuing company’s reserves.