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You just explained the Federal Reserve...
by patrickg_zill 8y ago
You just explained the Federal Reserve...
- creshal 8y agoThe Fed is backed by the US Federal Government, which has quite some assets to cash in to pay off its obligations in the worst case. Tether has… nothing.
- village-idiot 8y agoAlso, you need USD. Even if every other economic transaction you make is in crypto, you have to pay your taxes in USD. This alone adds quite a bit of demand for fiat.
- patrickg_zill 8y agoYes, there are very few examples of fiat being issued without requiring taxes be paid in that same fiat, as a way to drive demand for the currency.
- AstralStorm 8y agoFed has a few more economic considerations (esp. bank pressure and Treasury entanglements) than J. Random Scammer.
- bduerst 8y agoOnly if the federal reserve wasn't backed by the U.S. Military and did not have billions of people willing to trade with it's currency.
- Ntrails 8y agoSort of, but rather than being the guy posting on the internet the fed gets to draw on the GDP of a pretty big country. Second point, 1 dollar is not a stable unit of value as viewed by other currencies. This is fine, you're valuing the fed vs currency x's backing resource.