A rare case study in how crypto is actually being used by businesses: Chinese importers sending money home from Russia, to get around govt capital controls. The businesses don't want to deal with the volatility of Bitcoin so they use a stablecoin, Tether.
IN DEPTH: has a real-world use case: Chinese importers of cheap goods in Russia use it to send millions home everyday. reports.
Chinese importers in Russia are buying up to $30 million a day of tether (USDT) from Moscow’s over-the-counter trading desks. They use the cryptocurrency to send large sums back to their home country, which has strict capital controls.
Millions in Crypto Is Crossing the Russia-China Border Daily. There, Tether Is King via #crypto #china #russia
Been talking about this for months. Starting to bubble up to the mainstream. “Nobody actually cares if tether is backed or not”
Despite the KYC process for buying Tether, "since the token runs on top of public blockchain networks (bitcoin, ethereum and tron), anyone can receive or send it, and secondary trades are unrestricted." via
Tether is useful to tons of people
“Millions in Crypto Is Crossing the Russia-China Border Daily. There, Tether Is King” I was thinking writing one piece on how Tether is being used widely in non crypto use cases such as cross boarder trades in China, this piece is a must read
Millions in Crypto Is Crossing the Russia-China Border Daily. There, Tether Is King via
19/ Here’s another China related crypto story I thought was fascinating. In her piece for , write how Chinese importers in Russia are buying up to $30m Tether each day as a way to get around strict capital controls.
Great reporting by CoinDesk. Good to see. via
Great article. Chinese traders who need to repatriate funds are evading capital controls by using Tether--a stablecoin--and not bitcoin: People crave stable media-of-of-exchange, not roller-coaster rides.
As notes, this is very similar to a "new eurodollar market without institutional founders" - operating on permissionless payment rails that enable, in this case, the circumvention of capital controls.
This is an incredible read. Nice work by
Russia & China not interested in attacking USD; they want censorship-resistance bc they are likely to be sanctioned. Russia refuses to use yuan and China obv won't adopt ruble. Importers already turning to Tether: (h/t )
This is why a stablecoin like Tether will always be a lot more useful than Libra could ever be (which will probably never even launch).
“Millions in Crypto Is Crossing the Russia-China Border Daily. There, Tether Is King”
a crypto* has a real use-case *crypto that is suffering from big allegations of fraud
Had seen that. Very wishy washy. Thought there might be some in-depth report like this: To answer your Q, there are obvs many ways to avoid capital controls. Bitcoin is very easy to route value across borders though. USDT is even better.
Tbf that hypothetical USDT-BTC example was my addition, just to illustrate to concept. But, you have a point