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a) Banks have actual rules they have to follow with respect to fractional reserves. b) Individual bank accounts (in the US) are backstopped by the federal gove
by InitialLastName 4y ago
a) Banks have actual rules they have to follow with respect to fractional reserves.
b) Individual bank accounts (in the US) are backstopped by the federal government, via FDIC. It might still be a scam, but it's a scam whose validity is backed by the most expensive military on Earth.
- xuki 4y agoHere is the secret: USD is not backed by anything, and the US can print an unlimited amount of it. That's why they have zero risk of a bank run. Tether is "backed" by USD and they can't print USD, that's where the problem lies.