> I know little about finance but I don't understand why it is smarter to back a stable with cash rather than with bonds and loans for instance. It’s probably

> I know little about finance but I don't understand why it is smarter to back a stable with cash rather than with bonds and loans for instance. It’s probably not a bad idea if done in good faith. I probably should have said “sketchy bonds/loans”. What bitfinex has been doing is extremely sketchy and (imho) probably won’t survive a run (if a run ever happens).