US Fed Official Calls Tether a ‘Challenge’ to Financial Stability

Re:US Fed Official Calls Tether a ‘Challenge’ to Financial S... by gruez on Saturday June 26, 2021 @02:09PM (#27644317)

But by default (eg. someone buying BTC or DOGE) they're probably not touching USDT right?

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Re:US Fed Official Calls Tether a ‘Challenge’ to Financial S... by ac29 on Saturday June 26, 2021 @03:47PM (#27645171)

There's a pretty rich history of exchanges suffering "hacks" or other losses and giving all of their customers a haircut on assets to make themselves whole. Coinbase is a little less sketchy than offshore, unregulated exchanges, but if they are holding a large amount of Tether when it goes bust, I wouldnt assume any balances held on Coinbase are necessarily safe.

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Re:US Fed Official Calls Tether a ‘Challenge’ to Financial S... by gruez on Saturday June 26, 2021 @04:42PM (#27645647)

>but if they are holding a large amount of Tether when it goes bust, I wouldnt assume any balances held on Coinbase are necessarily safe.

That's only an issue if they blend USDT and USD balances together, which to my knowledge they don't. If you sold a bunch of your bitcoins for USDT rather than USD (which seems unlikely, seeing that BTC-USD has 28x the volume of BTC-USDT), and USDT goes bankrupt, that's on you.

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