Tether: The Invisible Power of Cryptocurrency and Its Entanglements in Global Conflicts

In the world of cryptocurrencies, Tether has established itself as a significant, albeit controversial, player. This so-called stablecoin, which has become an essential component of the global digital financial landscape, resembles a digital dollar and is used by a growing number of users for fast, cost-effective, and anonymous transactions. Yet beneath the shiny facade lies a darker side that repeatedly makes headlines. A notable story concerning Tether involves a sanctioned financier of the Houthi rebels, Sa’id al-Jamal, who managed to move substantial amounts of over 300 million US dollars in Tether despite US-based financial sanctions. This draws attention to the risks and the potential for concealment that Tether seemingly offers, raising questions about its role in illegal activities. Among others, North Korean governments, Mexican drug cartels, as well as human and arms traffickers have been in the news for allegedly using Tether for their purposes. Howard Lutnick, the appointed US Secretary of Commerce and Tether supporter, stands particularly in the spotlight. As an experienced CEO of Cantor Fitzgerald, Lutnick has established his bank as a hub for Tether's operations and defends the use of Tether despite increasing criticism from political and regulatory circles. Senator Elizabeth Warren and others see this as a potential threat to the national security of the United States. The discussions about Tether and its prominent users have also made political waves and could provide explosive material in upcoming US Senate hearings. Lutnick, closely connected to the Trump administration, has announced his intention to divest his business interests to avoid conflicts of interest. However, critics doubt whether Tether is truly as transparent as its supporters claim. Alongside the newly announced relocation of Tether's headquarters to El Salvador and its potential strategic comeback in the United States, it is clear that this digital currency remains a hotly debated topic not only in financial circles but also on the political stage.