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USD is printed in necessary quantities to satisfy market demands, and is used by its issuers to buy some privately issued assets on the market, injecting liquid
by atemerev 7y ago
USD is printed in necessary quantities to satisfy market demands, and is used by its issuers to buy some privately issued assets on the market, injecting liquidity into the stagnating ecosystem. This is called “quantitative easing”.
If USD works this way, why shouldn’t USDT?
- wpietri 7y agoTwo main reasons. Holding a US dollar is a bet on the US economy, the US government, and the US banking system. Those have their flaws, but there's a lot of built-in checks and balances that keep them reasonably accountable. The other is that the Fed does all of its currency management very much in the public view. Whereas the USDT management has been somewhere between needlessly opaque and flat-out fraudulent.
- atemerev 7y agoThe second one is important, thanks. I don't think that government money have any more sanctity than any other, but yes, transparency and well-defined RoE and accountability are important.
- briatx 7y ago1) Tether is not the Fed. 2) Tether claimed in the beginning that they had $1 USD in the bank for every 1 Tether issued. 3) Given (2), printing Tether out of thin air that isn't backed by USD deposits is fraud.
- qtplatypus 7y agoBecause Tether said that it wasn’t doing that.