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The 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.
by creshal 8y ago
The 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.