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You just explained the Federal Reserve...



The Fed is backed by the US Federal Government, which has quite some assets to cash in to pay off its obligations in the worst case. Tether has… nothing.


Also, you need USD. Even if every other economic transaction you make is in crypto, you have to pay your taxes in USD. This alone adds quite a bit of demand for fiat.


Yes, there are very few examples of fiat being issued without requiring taxes be paid in that same fiat, as a way to drive demand for the currency.


Fed has a few more economic considerations (esp. bank pressure and Treasury entanglements) than J. Random Scammer.


Sort of, but rather than being the guy posting on the internet the fed gets to draw on the GDP of a pretty big country.

Second point, 1 dollar is not a stable unit of value as viewed by other currencies. This is fine, you're valuing the fed vs currency x's backing resource.


Only if the federal reserve wasn't backed by the U.S. Military and did not have billions of people willing to trade with it's currency.




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