https://tether.to/en/how-it-works The people saying it do not use Tether usdt I use Tether and it is more valuable than a physical US $ where I'm located
After seeing what you wrote, I think its also possible for it to end up like the Eurodollar. Its a US dollar, completely outside of US control, and its bigger than the domestic USD balance I believe. So with this new stablecoin bill coming soon, if USDT cannot meet whatever requirements are imposed, it could just easily continue to service the entire market outside of the US. And this might in fact be better because if these rules for using a US approved stablecoin are too strict, no other users want to touch it anyway. Its almost silly because imagine if the US was regulating websites and before you could load up a webpage, some authority had to confirm that the website you want to view meets US guidelines. I get that the US based business for USDT is huge, so likely a lot of business would be taken away, but I guess its no different than exchanges. If you can't meet all the requirements to be able to operate in the US, you still have many customers all over the world. But of course saying all that, if Tether cannot meet the requirements to operate in the US, maybe enough people get scared away and convert into something else. I imagine stablecoins backed by the big US banks will likely do very well.
Actually, it's not, there's no business use-case for usdt or any stablecoin in the US because most people use CC, Venmo, Zelle for USD transactions. I came from the US Outside of the US, $ is king, which is the reason everyone wants $ but local companies cannot accept $ as currency But everyone wants $, including businesses, which is why Eurodollars is massive as you described But you need a bank account to have Eurodollars, they do not exist in physical form, only as a bank ledger, which is why USDT is more valuable, has a higher exchange rate to local currency and operates 24/7 not bank hours and no holidays I'd like to see how the Tether truthers would react to that stablecoin, remember big US banks operate on fractional reserve, I think I heard somewhere the US Treasury is rehypotheticated 30 times through banks and intermediaries On a related note, PayPal USD stablecoin was hyped up, at the peak, it was $1B market cap, today it's $700M, it's f*cking dead, no one uses it I can't even exchange it for a local currency where I'm at Crypto bros and actual participants in the global markets do not trust TradFi even if they are big Tether with 100 employees is more profitable than Blackrock, why? because they do not pay interest to their customers, but they earn interest from the US Treasuries $144B of interest free loan to Tether and growing https://www.coingecko.com/en/coins/paypal-usd
Bitcoin was founded on the "Don't trust, verify" principle Yet the bitcoins main pillar is Tether whose only proof of having money is "trust us bro" At this point it's comical, but it will turn into a tragedy.
I'm trying to think if this is true of not. Its of course true that access to USD and electronic payment is super easy for US citizens, but at the same time, almost all trading pairs are in USDT, and especially so DeFi I think. None of it would be possible if there wasn't a stablecoin because how else could you swap from different coins into USD if you didn't have an account at an authorized exchange? Most exchanges, unless they have banking relationships, cannot work with USD. For me its easy to buy or sell all the top coins by exchanging dollars for the coins, or vice versa, but since USDT is by far the the biggest player in trading pairs, I wonder what would have happened is USDT didn't exist, or if it doesn't comply with the new regulations going forward. Today its of course easy to choose another stablecoin, and hence why USDT perhaps not being approved within the US wouldn't be a big deal, and likely even something that banks are fighting for in order to steal some of the business. If its deemed that USDT cannot be used in the US, I imagine its an instant 50% drop at least in terms of volume, but this of course would mean redemptions which means those treasuries would be sold, which the government doesn't want. Excellent point, but I imagine the banks would keep this separate because they would know how quickly outflows can happen in a digital world. But lets also not forget that a bank issued stablecoin is very centralized, and will likely have even more asset freezing than USDT. The more that addresses are frozen, the less likely this stablecoin will prove to be a winner. So perhaps, in a way, bank issued stablecoins will never catch on. If they are forced to blacklist too many addresses, everyone will see that this stablecoin has too many risks. And if the bank doesn't blacklist, it will likely not be following all the regulations. So as I'm thinking through all of this, I'm actually not sure which way things can go. This is great advertising for bitcoin though.... no fear of frozen addresses!
Sorry, I should have said before that I have been trading markets 30+ years and that I have some own AI models.......maybe that helps to take more seriously my words "I see a high risk of going to 60-70 K, be careful with longs "
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