Tether is not, contrary to previous statements, one hundred percent covered by deposited US dollars. As can be seen from a change in the text of the homepage of the “stable coin”, the cover could now also be made by other assets.
Stable coins are primarily designed to provide a safe haven for traders. If you trade cryptocurrencies on Bitcoin exchanges and want to park them at short notice without going bankrupt, you have the option to change them into stable coins. Because these are covered 1: 1 by deposited Fiat currency or other (more or less) stable assets. At least the promise.
No safe haven for Bitcoin traders
The largest of these stable coins, namely Tether, was repeatedly criticized. Notably, suspicions came up here whether the actual coverage of the cryptocurrency. Recall the turbulence around the Bitcoin exchange Bitfinex. Thus, the main allegation last October was that the stock market no longer had enough cash reserves to disburse its customers. In addition, there was a conspicuous censorship on the part of the…