Re:The trillion-dollar lawsuit against Tether
by macspoofing on Monday November 04, 2019 @03:22PM
(#21446053)
>There would be nothing wrong with backing a token to a currency.
I don't know about that. Isn't the entire point of stablecoin to skirt existing regulations? Moving fiat currency isn't hard in and of itself. There is no technical challenge in Paypal sending $100,000 to my friend in Iran.
What makes it hard are the regulations combating money laundering, criminal and terrorism funding and enforcement of sanctions.
Re:The trillion-dollar lawsuit against Tether
by papln on Monday November 04, 2019 @03:51PM
(#21446366)
Paypal could void the transaction and freeze your account or your friend's account.
As I understand it, the issue isn’t with a stablecoin. There would be nothing wrong with backing a token to a currency.
Unfortunately, it looks like Tether didn’t tell the truth. They claimed that they would have one US dollar in their bank account per token in circulation. This was a lie and they release an enormous number of unbanked tokens into the market. The class action claims they created 2.8 billion USDT between 2017 and 2018. At the time, the market believed the tokens had implicit value (as one was backed by a dollar) so the theory is that this made buying crypto a more compelling investment.