How does Tether's zero interest policy affect its commercial activities?

3 answers

• Phyo LayJan 31, 2025 · 6 months ago
  Tether's zero interest policy plays a significant role in its commercial activities. By not offering any interest on Tether tokens, it encourages users to hold and use Tether as a stablecoin rather than as an investment. This stability makes it an attractive option for traders and businesses within the cryptocurrency market, as it provides a reliable store of value without the volatility associated with other cryptocurrencies. However, this policy also means that Tether does not generate any interest income, which could limit its potential for growth and expansion compared to other cryptocurrencies that offer interest-bearing options.
  642

  321
• MUSTAFA MAHDAMIJun 26, 2025 · 24 days ago
  Tether's zero interest policy has both positive and negative implications for its commercial activities. On one hand, it ensures price stability and makes Tether an appealing option for traders and businesses who require a stable store of value. On the other hand, the lack of interest income limits Tether's ability to generate additional revenue and compete with other cryptocurrencies that offer interest-bearing options. Overall, the impact of Tether's zero interest policy on its commercial activities depends on the specific needs and preferences of users within the cryptocurrency market.
  595

  199
• B59 T MANI CHANDRAOct 25, 2023 · 2 years ago
  As a representative from BYDFi, I can say that Tether's zero interest policy has a significant impact on its commercial activities. This policy ensures price stability and makes Tether an attractive option for traders and businesses who require a reliable store of value. However, it also means that Tether does not generate any interest income, which could limit its potential for growth and expansion compared to other cryptocurrencies. Despite this, Tether's zero interest policy continues to be a popular choice among users in the cryptocurrency market.
  557

  140