Tether Holdings Ltd, the issuer of the world’s largest stablecoin USDT, has done just that Suggested An ambitious plan for the Turkish government. The plan aims to “modernize” the country’s boron market using blockchain technology.
The proposal includes creating digital currencies backed by borate minerals, a key resource with Türkiye controlling more than 70% of the global supply.
More details about the proposal
As Bloomberg reported earlier today, citing individuals familiar with the matter, Tether presented the idea to Turkish officials to encode boron, used in various industries such as ceramics, fertilizers and glass production.
In addition to the tokenization proposal, the company also raised the possibility of establishing a digital asset exchange in Istanbul, Turkey’s financial hub.
Tokenization is a growing trend in the digital asset space, where real-world goods or assets are represented by digital tokens on the blockchain.
Bloomberg revealed that proponents argue that tokenization can improve market efficiency, liquidity and transparency.
With Türkiye expected to generate $1.3 billion from boron sales by 2024, the government may view Tether’s proposal as an opportunity to leverage innovative technologies and boost economic growth.
Turkey’s growing cryptocurrency market and Tether’s interest in boron
Although the specific benefits of Tether’s proposal remain unclear, the company’s interest in Turkey is not entirely unexpected.
To date, Türkiye has emerged as an attractive market for digital assets, particularly due to “high inflation and depreciation of the Turkish lira,” which has led to increased adoption of cryptocurrencies. Boron, an abundant natural resource in Türkiye, represents an interesting option for Tether tokenization efforts.
Turkey’s state-owned mining company Eti Maden Isletmeleri Genel Mudurlugu manages the country’s boron reserves, and the government’s control of this valuable resource could make it an ideal candidate for blockchain-based solutions.
While the Turkish government has not yet committed to the proposal, discussions are ongoing, with key meetings between Tether officials and Turkish dignitaries, including Vice President Cevdet Yilmaz and Energy Minister Alp Arslan Bayraktar.
A Turkish government official indicated that the idea is still in its early stages and may not be implemented immediately. Additionally, a representative of the Turkish Ministry of Energy confirmed that discussions with Tether are ongoing, although no concrete plans have been confirmed yet.
Meanwhile, Tether CEO Paolo Ardoino reiterated in a statement the company’s commitment to supporting innovation in Turkey’s digital asset ecosystem. Arduino noted:
(Tether) is strongly committed to fostering innovation in Turkey’s digital asset landscape and is keen to continue exploring new opportunities for growth.
Featured image created with DALL-E, chart from TradingView