Tether Says Stablecoin Is Only Backed 74% by Cash, Securities

Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by aikah on Tuesday April 30, 2019 @05:20PM (#19792062)

> My bank only needs to keep 10% of its deposits backed by cash, securities.

True, but your FIAT is FDIC insured to an extend. Neither Tether nor any of these funny moneys are.

Furthermore, I'm pretty sure non accredited banks cannot run fractional reserves legally.

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Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by notahacker on Tuesday April 30, 2019 @06:14PM (#19792552)

Also, fractional reserves are fully backed by outstanding loans due for repayment, which is not the same as being backed by nothing. A decade ago, we saw how bad it was for the whole ecosystem when more loans than expected turned into nothing...

That's not at all similar to Bitfinex only pretending to back Tether.

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Re:Tether Says Stablecoin Is Only Backed 74% by Cash, Securi... by ceejayoz on Tuesday April 30, 2019 @07:44PM (#19793146)

Also also, banks don't falsely claim "we're not fractional reserve" on their websites for years.

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