Telegram is Now Accepting Tether Stablecoin as Payment: Here's How it Works

Messaging platform Telegram has recently unveiled an interesting feature allowing users to conduct transactions using the stablecoin USDT through its associated blockchain, The Open Network (TON).

It was only in May 2022 when Telegram opened its gates to cryptocurrencies. With this huge change, TOIN coin transactions will take place without any fees.

What is Telegram's TON Blockchain

Initially conceived by Tether and subsequently adopted by open-source developers, TON serves as the backbone of Telegram's blockchain network. This integration facilitates seamless transactions within the Telegram app ecosystem, leveraging the stability of USDT, a stablecoin developed by Tether.

With the Tether stablecoin operator establishing strong ties with the Web3 ecosystem of Telegram, stablecoins are finally here to stay.

According to Cointelegraph, the announcement emerged in connection to the keynote speeches of Telegram CEO Pavel Durov and Tether CEO Paolo Ardoino during the Token2049 crypto event in Dubai.

How Telegram Users Make Use of Tether Stablecoin as Payment

To initiate USDT transactions, users can access the Wallet bot on Telegram via the app's search bar and set up their crypto wallet.

Once configured, users can effortlessly purchase USDT and transfer funds to other users by selecting Tether's token as the preferred payment method.

Promoting Mainstream Adoption

This strategic move by Telegram is poised to propel Tether's USDT into the mainstream. With stablecoins gaining traction as a viable alternative to traditional fiat currencies, the ability to conduct USDT transactions within Telegram offers users greater flexibility and accessibility in the digital currency field.

Stablecoins Are Subjects of Concern in the Past

While stablecoins offer a stable value proposition by pegging their prices to underlying assets such as the U.S. dollar, they have faced scrutiny from regulators and investors.

As CNBC reported on Friday, April 19, concerns regarding the transparency and adequacy of reserves backing stablecoins, particularly Tether, have been raised within the crypto community.

Despite these challenges, Tether has consistently reiterated its commitment to maintaining full reserves to support the value of its USDT token.

With a focus on transparency and liquidity, Tether aims to instill confidence in its stablecoin and reassure users of its ability to honor withdrawals, even during periods of market volatility.

Telegram is Embracing the Efficiency of Crypto Payments

Telegram's integration of USDT payments via the TON blockchain marks a big milestone in the evolution of digital transactions.

By influencing the stability and security of stablecoins, Telegram empowers users with a smooth and efficient payment solution within its platform, paving the way for broader adoption and innovation in the cryptocurrency sector.

Last month, Durov announced that users could soon add locations and opening hours for their business. This means that they can now finally convert their accounts into business accounts. This also comes with AI chatbots that will answer customers' queries.

Just recently, Durov said that Telegram could likely hit one billion active monthly users within this year.