In two X posts published on March 2 and March 3, respectively, Tether CEO Paolo Ardonio shared his plan for addressing the electricity crisis in Africa. What is his plan, and why does Africa hold special significance for Tether?
**Ardonio’s Announcement**
On March 2, 2025, Ardonio took to X to discuss his vision for tackling the power crisis in Africa. He stated that 600 million Africans lack access to electricity and shared his vision for a potential solution.
Ardonio suggested that there is a “plan underway.” He believes that a network of kiosks equipped with high-performance batteries and eco-friendly solar panels can serve as a remedy. People will be required to purchase a monthly subscription to recharge the batteries using these kiosks, with payment options including local currency, Bitcoin, or USDT. The kiosks will provide electricity for the local community.
The network is set to be deployed in at least two phases, with ten thousand charging locations established in the first stage. In the second stage, the number of locations will be increased to 100,000.
In addition to providing electric power to residents, the kiosks will offer high-quality educational materials and courses on Bitcoin and saving in Tether. Furthermore, Ardonio mentioned “the biggest distribution network for any goods and services.”
On March 3, Tether’s CEO added that the described plan “is not an [sic!] hypothetical,” and that “a few hundred kiosks are up and running.” In the comment section, Ardonio noted that after Tether achieves power generation, it will focus on infrastructure.
**Reactions**
The announcement received a wide range of reactions, from skepticism to full approval. For example, Blockstream CEO Adam Back expressed willingness to disseminate his company’s educational materials about Bitcoin through these kiosks. Several commenters raised potential challenges associated with the initiative or questioned Tether’s role in such a venture.
One commenter, Mutasco, pointed out that the spirit of decentralization aligns more with creating a framework that incentivizes various independent actors to establish such kiosks, rather than having the company itself build the entire network. He suggested that the Tether Foundation could potentially develop this framework. “This balances autonomy with centralized support that creates alignment with the ethos of building a community-owned network,” said Mutasco.
Another commenter, known as Crouching Tiger Hidden Whale, questioned whether residents would be able to afford the subscription. Additionally, Crouching Tiger expressed concerns over the safety of Tether’s initiative, suggesting that locals could potentially “hijack” the kiosks to utilize battery rechargers without going through the paywall. In response to these concerns, Ardonio noted that several hundred locations are already operational and stated, “so far so good.”
Representatives from telecom companies appeared in the comment section to commend the initiative and promote their services, highlighting the importance of connectivity. One of them shared that in 2019, he and his partners installed two air nodes in a small, remote fishing village in Tanzania, which proved to be very effective, as the village has since tripled in size, providing residents with a greater sense of safety and increased opportunities for selling fish.
**Tether in Africa and America**
It is worth noting that Tether has consistently emphasized its role in Africa and other regions where people lack banking access and tools for saving money in stable currencies. The company’s website explicitly identifies Africa, South America, and Central America as regions where Tether “empowers millions,” saving families “from the spiraling devaluation of their local currencies.”
The use of USDT has significantly increased in Africa since 2022. Bloomberg cites Tether’s Head of Economics, Philip Gradwell, who states that the primary use cases for Tether in Africa are in saving value and remitting money abroad.
Facilitating financial opportunities in developing countries is accompanied by the mission of extending the influence of the American dollar in these regions. Tether is one of the world’s largest purchasers of U.S. Treasury bills, emphasizing its role in aiding the reduction of U.S. debt and stimulating the American economy as well.
This becomes particularly relevant today as the company faces increased scrutiny in the U.S. While the new crypto-friendly SEC continues to dismiss one Gensler-era case after another, Tether finds itself in a much more contentious situation than before 2025. The new GENIUS Act, aimed at regulating stablecoins, demands greater transparency from Tether, a company that has never undergone audits by the “Big Four” auditing firms. Some experts believe that Tether may not be able to comply with these regulations and could be forced to exit the U.S. market.
The U.S. Treasury is contemplating sanctions against Tether, as it provides services to sanctioned nations like Russia and Iran, as well as to the terrorist organization Hamas. Another concern involves Tether’s alleged involvement in funding North Korea’s nuclear program. In October 2024, the WSJ reported that federal prosecutors are investigating potential violations of sanctions and anti-money laundering laws. The January 2024 UN report indicates that Tether is one of the preferred cryptocurrencies for illicit activities and money laundering. The report estimates that $17.07 billion in USDT was spent on illegal activities between September 2022 and September 2023, which, while not a substantial percentage of Tether’s overall volume, provides sufficient grounds for intensified scrutiny and potential prosecution.
In light of a possible withdrawal from the U.S. market, increasing its influence in other regions and shifting focus from USD-pegged stablecoins to Bitcoin may prove to be an effective recovery strategy for Tether.