Justin Sun Challenges UN Report On USDT And Blockchain
In a recent development, Justin Sun, the founder of Tron and CEO of BitTorrent, has challenged a United Nations (UN) report on the use of Tether (USDT) and blockchain technology. The report raised concerns about the potential misuse of these technologies for illicit activities. Sun, however, has countered these claims, arguing that the benefits and potential for the positive global impact of these technologies far outweigh the risks.
The UN report had criticized the use of Tether, a stablecoin pegged to the US dollar, and blockchain technology, suggesting that they could be exploited for illegal activities due to their decentralized nature. However, Sun and Tether have refuted these claims, emphasizing the transparency and legal compliance inherent in their use.
Tether, in particular, criticized the UN report for not adequately recognizing its role in aiding developing economies and facilitating financial inclusion. The company stressed that using public blockchains for Tether tokens enables tracking every transaction, thus arguing that USDT is an impractical choice for criminal use.
Tether also highlighted its efforts to freeze funds linked to illegal activities, with more than $300 million in USDT frozen in recent months, including $225 million in November 2023 as part of a US investigation. The UN report was also criticized for overlooking the positive role of USDT in financial inclusion for underbanked communities. The company pointed out that the report should have also addressed how centralized stablecoins like USDT can improve anti-financial crime efforts
Sun’s response, along with Tether’s stance, reflects a broader dialogue within the cryptocurrency and blockchain community about the responsible use of these technologies. As the industry continues to evolve, emphasizing transparency, legal compliance, and the potential for positive global impact remains a central theme.
As an individual serving as a diplomatic ambassador in international institutions (UN, WTO), I am deeply aware of the importance of blockchain technology for global cooperation. At the same time, education of blockchain knowledge are particularly important. #TRON and @HTX_DAO are… https://t.co/jwloiDygzY— H.E. Justin Sun 孙宇晨 (@justinsuntron) January 19, 2024
The ongoing discussions and responses to the UN report highlight the complexities and challenges faced in this rapidly evolving sector. The debate underscores the need for global cooperation and education about blockchain technology and cryptocurrencies to ensure their responsible and beneficial use.
This development marks a significant moment in the ongoing dialogue about the role and impact of cryptocurrencies and blockchain technology in the global economy. As the discourse continues, the focus remains on finding a balance between harnessing the potential of these technologies for positive change and mitigating the risks associated with their misuse.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information