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Depends what you mean by “holding” USD. Is it under your mattress? Or in a bank? Is it a bank in Venezuela or Lebanon? Holding USDT is kind of holding USD. You
by jasonlingx 4y ago
Depends what you mean by “holding” USD. Is it under your mattress? Or in a bank? Is it a bank in Venezuela or Lebanon?
Holding USDT is kind of holding USD. You just have Tether in the middle.
Main utility (value?) of stablecoins is to “bridge” USD fiat into crypto though.
Interestingly, crypto.com (exchange) keeps a “USD” balance for its customers, which is separate from its USDT balance. You can deposit/withdraw to/from your “USD” balance via fiat (bank transfer) or a basket of stablecoins like USDC, BUSD etc. Binance does this as well, and FTX before. They all kept USDT separate though. Worth considering why this is the case.
- JumpCrisscross 4y agoI think the question is, given a choice of stablecoins, who is choosing Tether and why?
- koolba 4y agoUSDC has been known to blacklist users and lock their coins from further transfer: https://thedefiant.io/usdc-addresses-banned https://thedefiant.io/usdc-addresses-banned They’re regulated by the USA and I’m sure the terms say they’ll comply with requests from Uncle Sam.
- JumpCrisscross 4y ago> regulated by the USA and I’m sure the terms say they’ll comply with requests from Uncle Sam To be clear, the theory is Uncle Sam has no power over Tether's U.S. dollars?
- koolba 4y ago> They all kept USDT separate though. Worth considering why this is the case. Because they’re not dollars, it’s a token that is supposed to be pegged to a dollar. It’s not a dollar until you redeem it for an actual dollar. In that respect it’s the same as USDC.