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I had no idea that USDT was backed up by American Debt! Very fascinating.

1) its not “backed” in that you cannot exchange your tether for the debt, and

2) its a circular digital fiat in this way: tetherCo issues a digital tether token, fed issues debt for fiat; tetherCo uses the fiat received to buy debt. End result is conversion of fiat to digital fiat.

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Discussion

Sparrow 11mo ago

Thanks for the additional info. “Secured” could be a better word, perhaps?

It’s still just basic economics that blows my mind. Illusory (printed) DEBT has a value, and it’s being sold and traded as such. Just, wow.