@daedalean @GhostOnTheHalfShell
> "so wait, they created a cryptocurrency that’s (hypothetically) backed by USD cash reserves?"
they created *many* such cryptocurrencies (though Tether USDT and Circle USDC are the overwhelming majority of the market, recently everyone is launching their own #stablecoin bc it's insanely profitable to collect interest from the US govt and not pay any to your customers. for instance blackrock has a stablecoin #BUIDL and paypal has one #PYUSD)
> "So it’s like having USD in a bank but with crypto?"
that's exactly what it's like.
> "ok, think I get it. It’s a loophole for those (eg russian oligarchs) who are banned from us financial systems to be able to keep USD on hand"
you have understood perfectly. "banking the unbankable" is what i call it (the crypto industry calls it "banking the unbanked")
i wrote a long thing about how Tether works, which BTW is partially owned and run by a member of Trump's cabinet (#HowardLutnick)
https://cryptadamus.substack.com/p/trumps-transition-team-is-tethered