- Tether is the world’s leading stablecoin issuer.
- Tether has denied any reports that it’s pulling the plug on its ambitious $500 Million Uruguay Crypto Project.
The Controversy Over Uruguay Crypto Project
According to one news outlet, UTE cut power to Tether’s facilities in May over an unpaid $2 million electricity bill.
The reports also alleged that Tether owed an additional $2.8 million for other local projects, racking up a total debt of $4.8 million, excluding fines.
The news sent ripples through Uruguay’s crypto community, raising questions about the viability of energy-intensive industries in the country.
Tether’s Response to Allegations
Tether pushed back against the narrative in a statement.
“We continue to evaluate the best way forward in Uruguay and the region more broadly”, it read.
“While reports have speculated an exit from the region, these do not accurately reflect the situation.”
Tether went on to acknowledge the debt issue but emphasized that its local partner is in “ongoing discussions with the government to resolve the outstanding friction.”
Tether says they are optimistic and will continue to remain committed to “sustainable opportunities in the region.”
Reception to Tether’s Uruguay Crypto Project
Tether’s Uruguay crypto project was received well by the nation back in November 2023.
Local media projected investments could reach a staggering $500 million.
In fact, this project was attributed to a potential economic boon.
But Uruguay’s high electricity costs, ranging from $60 to $180 per megawatt hour (MWh) do not help.
In contrast, neighboring Paraguay offers power at a mere $22 MWh, making it a magnet for crypto miners including for Tether.
Uruguay’s steep electricity prices have long been a hurdle for energy-hungry industries like crypto mining and artificial intelligence as well.
Stablecoin Adoption in South America
Meanwhile, stablecoin adoption is gaining traction across Latin America, particularly due to high inflation.
In Brazil, stablecoins account for 90% of crypto activity, according to the Central Bank.
In Bolivia, vehicle manufacturers Toyota, Yamaha, and BYD have started accepting Tether’s USDT stablecoin for payments.
In Venezuela, where inflation hit 229% in May 2025, USDt is replacing the bolívar in daily transactions like buying groceries and paying salaries.
In Colombia, MoneyGram’s crypto payments app now allows locals to save in US dollar stablecoins as the Colombian peso weakens.
In this context, whether Tether will remain committed to its Uruguay crypto project is yet to be seen.
