It facilitates the seamless transfer of capital abroad, as noted in a recent article by The Wall Street Journal.
The authors argue that Tether enables the creation of a “parallel economy” that operates outside the reach of U.S. law enforcement agencies. Due to the anonymity and decentralized nature of the stablecoin, users are able to bypass financial restrictions and sanctions imposed on traditional banking systems.
In 2023, USDT trading volumes surpassed those of the Visa payment system, highlighting its growing popularity as a tool for international transactions amid economic instability. The use of the stablecoin has become especially relevant in countries with strict currency controls, such as Venezuela and Russia, where access to the dollar is limited or restricted through official channels.
