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 drilling market using blockchain technology.
The proposal involves creating digital tokens backed by borate minerals, a key resource with Turkey controlling more than 70% of the global supply.
Further details about the proposal
As Bloomberg reported earlier today, citing individuals familiar with the matter, Tether presented the idea to Turkish officials to tokenize boron, which is used in various industries such as ceramics, fertilizers and glass. production.
In addition to the tokenization proposal, the company has also raised the possibility of setting up a digital asset exchange in Istanbul, Turkey’s financial center.
Tokenization is one growing trend within the digital asset space, where commodities or real-world assets are represented by digital tokens on a blockchain.
Bloomberg revealed that proponents claim tokenization can improve market efficiency, liquidity and transparency.
With Turkey expected to generate $1.3 billion in drilling sales by 2024, the government could see Tether’s proposal as an opportunity to tap innovative technologies and boost economic growth.
The growing Turkish crypto market and Tether’s interest in boron
While the specific benefits of Tether’s proposal remain unclear, the company’s interest in Turkey is not entirely unexpected.
So far, Turkey has emerged as an attractive market for digital assets, mainly due to “high inflation and the declining value of the Turkish lira,” which has led to greater cryptocurrency adoption. Boron, a naturally abundant resource in Turkey, presents an intriguing choice for Tether’s tokenization efforts.
Turkish state-owned mining company Eti Maden Isletmeleri Genel Mudurlugu controls the country’s drilling reserves. government control about this valuable resource could make it an ideal candidate for blockchain-based solutions.
Although the Turkish government has not yet committed to the proposal, talks are ongoing, with key meetings between Tether civil servants and senior Turkish figures, including Vice President Cevdet Yilmaz and Energy Minister Alparslan Bayraktar.
A Turkish government official has noted 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 talks with Tether are ongoing, although no concrete plans have been confirmed yet.
Meanwhile, Tether CEO Paolo Ardoino confirmed in a statement the company’s commitment to supporting innovation in Turkey’s digital asset ecosystem. Ardoino commented:
(Tether is) deeply committed to fostering innovation in Turkey’s digital asset landscape and is eager to continue exploring new growth opportunities.
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