Maybe you do buy BTC on Exchange B. Then you transfer to Exchange A and sell, and what do you get when you sell? Tether. The point of Tether initially is reg

Maybe you do buy BTC on Exchange B. Then you transfer to Exchange A and sell, and what do you get when you sell? Tether. The point of Tether initially is regulatory arbitrage for Tether based exchanges. It gives them a fiat substitute without having regulatory baggage that trading in actual money would require. Tether then turned into a lifeline for a Bitfinex bailout and now acts as a (almost assuredly illicit) liquidity provider to Tether based markets. The only reason Tether is worth a dollar at this point is because the Tether denominated Exchanges say it is worth a dollar. They are really what backstop Tether now and are fully complicit.