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> In a full-reserve bank, each liability is matched 1:1 with assets in reserve. If someone with a digital dollar asks for the cash back, the holder is given the
by kwertyoowiyop 5y ago
> In a full-reserve bank, each liability is matched 1:1 with assets in reserve. If someone with a digital dollar asks for the cash back, the holder is given the physical dollar and the corresponding digital liability is destroyed. This is how Tether, USDC, and every other fiat-backed stablecoin works.
Tether is fully backed with physical dollars?
- is0tope 5y agoGuess thats the claim anyway.
- jqpabc123 5y agoTether is fully backed with physical dollars? Even Tether has backed away from that claim. It has also backed away from the idea that Tethers are redeemable for physical dollars. But somehow, it maintains it's peg just fine! It's worth 1 USD because we say so --- trust us.
- kwertyoowiyop 5y agoAnd yet, people still act as if those things are true. It's so strange. Mental musical chairs? "It's fine if I still believe it, as long as I'm not the last one to still believe it"?
- jqpabc123 5y agoLet the good times roll as long as crypto "evangelists" can find new "believers" to keep that fiat flowing in. They tricky part is recognizing the right time to jump off this carnival ride and avoid being a sad clown.