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I'm not saying they shouldn't be shut down, but I genuinely wonder how that process would work. People don't have an account with Tether itself, so how would th

I'm not saying they shouldn't be shut down, but I genuinely wonder how that process would work. People don't have an account with Tether itself, so how would they be able to compel people to "return?" the Tethers and get their cash back?

skybrian 5y ago
In theory, by announcing a changeover period and a deadline for turning them in? If they don’t, it’s on them. A similar thing was done when upgrading national currencies to the Euro: https://europa.eu/european-union/about-eu/euro/exchanging-national-currency_en https://europa.eu/european-union/about-eu/euro/exchanging-na...
WalterSear 5y ago
* They don't need to? If Tether, the company, disappeared, the market can decide what to do with the, now entirely unbacked, Tether cryptocurrency. * Tether, the company, can freeze specific Tethers they have issued, making them unusable as currency. Whoever shuts them down might be able to force them to do this en masse.
- BitwiseFool 5y ago
  That's the thing, though, Tether is supposed to be holding all these assets and individuals are able to redeem Tethers proportionally. Leaving aside the strict notion of 1 Tether = 1 Dollar convertibility, just closing up shop would mean all those actual real world assets now belong to... who exactly?
  - WalterSear 5y ago
    I'm confused as to what 'real world assets' you are referring to. If Tether goes away, any value goes with it, like a gift card to Blockbuster's. Fwiw, it's likely just the pretence of redemption that would go away - it may never have been really there. Tether is explicit that they only redeem Tethers at their discretion. While they also specify that they will only redeem them for high value, non-US parties, I suspect this is misdirection. There is no evidence of any appreciable redemption going on, though they have announced the burning of $1.5 billion Tethers - all in the last six months. According to Tether, this is because they just 'keep them for later'. https://cointelegraph.com/news/tether-explains-why-it-hasnt-burned-any-usdt https://cointelegraph.com/news/tether-explains-why-it-hasnt-... https://cointelegraph.com/news/bitfinex-is-constantly-printing-more-tether-none-of-it-has-ever-been-burned https://cointelegraph.com/news/bitfinex-is-constantly-printi...

skybrian 5y ago

In theory, by announcing a changeover period and a deadline for turning them in? If they don’t, it’s on them. A similar thing was done when upgrading national currencies to the Euro: https://europa.eu/european-union/about-eu/euro/exchanging-national-currency_en https://europa.eu/european-union/about-eu/euro/exchanging-na...

WalterSear 5y ago

* They don't need to? If Tether, the company, disappeared, the market can decide what to do with the, now entirely unbacked, Tether cryptocurrency. * Tether, the company, can freeze specific Tethers they have issued, making them unusable as currency. Whoever shuts them down might be able to force them to do this en masse.

BitwiseFool 5y ago
That's the thing, though, Tether is supposed to be holding all these assets and individuals are able to redeem Tethers proportionally. Leaving aside the strict notion of 1 Tether = 1 Dollar convertibility, just closing up shop would mean all those actual real world assets now belong to... who exactly?
- WalterSear 5y ago
  I'm confused as to what 'real world assets' you are referring to. If Tether goes away, any value goes with it, like a gift card to Blockbuster's. Fwiw, it's likely just the pretence of redemption that would go away - it may never have been really there. Tether is explicit that they only redeem Tethers at their discretion. While they also specify that they will only redeem them for high value, non-US parties, I suspect this is misdirection. There is no evidence of any appreciable redemption going on, though they have announced the burning of $1.5 billion Tethers - all in the last six months. According to Tether, this is because they just 'keep them for later'. https://cointelegraph.com/news/tether-explains-why-it-hasnt-burned-any-usdt https://cointelegraph.com/news/tether-explains-why-it-hasnt-... https://cointelegraph.com/news/bitfinex-is-constantly-printing-more-tether-none-of-it-has-ever-been-burned https://cointelegraph.com/news/bitfinex-is-constantly-printi...