I think we're kind of on the same line. > It was designed to solve the problems people were having cashing out from exchanges. Tether technically predates the

I think we're kind of on the same line. > It was designed to solve the problems people were having cashing out from exchanges. Tether technically predates the legal trouble between Wells Fargo and Bitfinex, but imo Tether as we know it got to it's current size specifically to allow American residents to get their non crypto money out of Bitfinex after no American bank wanted to work with Bitfinex. > The idea was that you sold your bitcoin on poleniex or wherever for USDT the then took that to the tether website and got your USD. Safe in the knowledge that your USDT would be exchanged exactly 1-1, with no bid/offer spread or moving price. Whose idea was this? Most big exchanges that trade tether don't support any fiat. Only recently most added support for competing stablecoins and Binance is playing with fiat. But it was never the idea from the beginning. > In reality, you could never really do that. I really don't agree that the plan was all along that everyone could do that. Tether would simply face exactly the same problems as Bitfinex. Instead Tether allows you to trade on many different exchanges and big traders can directly convert tether into dollar. But definitely not everyone, in the beginning retailers could create a tether account but that's about it. > As others have mentioned, the likely reason they never have is that they would hit exactly the same challenge all the exchanges did with their bank and the KYC rules. Yes exactly, as such it was never (or since the Wells Fargo suit) supposed to work like this. I'm not sure why you think this was the plan or design? ---- To sum up: - We both agree it's hard for every day traders to convert tether into USD. They have to use public crypto markets to achieve this. Though I don't agree this is against any design or plan (ever since Wells Fargo anyway). - This has worked fine for years since the biggest traders are able to convert tether into USD (and the other way around). The second they can't you'll see price divergence (a lot bigger than what we see right now - since firms will be trading out of millions in tether exposure). - The risks of Tether are well documented, most retail is aware of the danger.