Frances Coppola: Tether's U.S. Dollar Peg Is No Longer Credible: "Tether does not have 100% traditional currency backing for its reserves. It has 'cash equivalents'... has become an unregulated fractional reserve bank. It’s a very risky fractional reserve bank, too. Loans that you can’t sell, can’t pledge for cash, and may or may not be able to call are not by any stretch of the imagination 'reserves'.... Tether may regard one USDT as the same as one U.S. dollar, but without either the reserves or the central bank backing to guarantee this, its words are empty. The Fed isn’t going to step in and bail it out. Remarkably, though, crypto markets still believe Tether’s guarantee...
#noted
