>Saving depositors in regular banking is pure belief as well.
What matters, I believe, is that they have the assets to back the liabilities. 100% plus a safety margin. As far as I know, a regular bank or credit union meets that criteria and Tether does not.
Haven't you ever watched "It's a Wonderful Life"? Where the guy in an effort to stop a bank run, explains that the deposits are tied up in the homes and businesses of the people of the community?
That stuff isn't imaginary, it's just that people are panicking and forgot that it's all connected.
What matters, I believe, is that they have the assets to back the liabilities. 100% plus a safety margin. As far as I know, a regular bank or credit union meets that criteria and Tether does not.
Haven't you ever watched "It's a Wonderful Life"? Where the guy in an effort to stop a bank run, explains that the deposits are tied up in the homes and businesses of the people of the community?
That stuff isn't imaginary, it's just that people are panicking and forgot that it's all connected.