Powering Africa: Tether’s Plan to Solve the Energy Crisis with Crypto Payments

Amid growing speculation about Tether’s future in the U.S., the company’s CEO, Paolo Ardoino, has announced an ambitious project aimed at solving Africa’s electricity crisis. In a series of posts on X (formerly Twitter) on March 2 and 3, Ardoino shared a plan to provide electricity to millions of people in Africa through a network of kiosks powered by solar energy.

Tether’s Plan for Africa

Ardoino pointed out that 600 million Africans still lack access to electricity. His proposed solution involves setting up kiosks equipped with high-performance batteries and solar panels. These kiosks will allow people to recharge their batteries using a subscription model. Payments can be made in local currency, Bitcoin, or USDT.

The rollout will happen in two phases. The first phase will see the construction of 10,000 charging locations, with the second phase expanding the network to 100,000 locations. Apart from providing electricity, these kiosks will offer educational materials on Bitcoin and financial savings using Tether. Ardoino also hinted at a much larger vision, calling it “the biggest distribution network for any goods and services.”

On March 3, Ardoino assured that this project was already in motion. He revealed that a few hundred kiosks are already operational, and after power generation, the company will focus on improving infrastructure.

Mixed Reactions to the Announcement

The announcement received mixed reactions. Some people praised the initiative, while others questioned its feasibility. Blockstream CEO Adam Back supported the idea and even offered to share Bitcoin education materials through the kiosks.

However, critics raised concerns. A user named Mutasco suggested that instead of Tether building the entire network, it would be better to create a framework that allows independent players to develop the kiosks. Another user, Crouching Tiger Hidden Whale, questioned whether residents could afford the subscription and worried about potential misuse of the kiosks.

In response to these concerns, Ardoino reassured the public that the existing locations are functioning well. Meanwhile, representatives from telecom companies joined the discussion, highlighting how connectivity can drive economic growth in remote areas. One telecom worker shared an example from Tanzania, where installing internet nodes helped a small fishing village grow and thrive.

Tether’s Growing Influence in Africa

Tether has long focused on Africa and other regions where access to banking services is limited. The company claims to help millions of people by providing financial stability through USDT, protecting them from unstable local currencies. According to Bloomberg, USDT usage in Africa has increased significantly since 2022, primarily for saving and sending money abroad.

This growth is aligned with the broader mission of Tether to put the U.S. dollar at the forefront throughout the world. By being a major purchaser of U.S. Treasury bills, Tether provides support to the American economy. Tether now faces greater scrutiny in America.

Regulatory Pressure on Tether

While the U.S. Securities and Exchange Commission (SEC) has been easing crypto regulations, Tether is being watched closely. The recent GENIUS Act requires stablecoin issuers to be more transparent, and this pressure Tether to an extent. 

Additionally, U.S. officials are considering imposing sanctions on Tether since it is alleged to have been utilized by sanctioned nations like Russia and Iran, as well as terrorist organizations. In January 2024, a UN report claimed that USDT had been used in over $17 billion of illicit transactions in 2022 and 2023.

What’s Next for Tether?

With increasing pressure in the U.S., Tether may look to strengthen its presence in Africa and other regions as part of a long-term strategy. Expanding beyond USD-pegged stablecoins and focusing on Bitcoin and financial infrastructure could help the company maintain its global influence.

Whether Tether’s electricity initiative in Africa succeeds remains to be seen. However, if implemented effectively, it could transform lives by providing both power and financial education to millions of people.