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It really is just a bank without any of the regulatory safeguards. A disastrous outcome is inevitable.
by SheinhardtWigCo 2y ago
It really is just a bank without any of the regulatory safeguards. A disastrous outcome is inevitable.
- JumpCrisscross 2y ago> really is just a bank without any of the regulatory safeguards A "bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans" [1]. Tether doesn't offer demand deposits--withdrawals are subject to a minimum and fee [2]. It's thus not a bank, but a bank-like shadow bank [3]. [1] https://en.wikipedia.org/wiki/Bank https://en.wikipedia.org/wiki/Bank [2] https://tether.to/en/redeem-tethers-to-fiat-currency/ https://tether.to/en/redeem-tethers-to-fiat-currency/ [3] https://en.wikipedia.org/wiki/Shadow_banking_system https://en.wikipedia.org/wiki/Shadow_banking_system