I care because I don't require an intermediary to withdraw my USD "IOUs" from a normal bank.
In the case of Tether these intermediaries that decide whether or not I get my USD (Alameda, FTX, etc) are located on the opposite ends of the earth stockpiling cash by playing trading games and have a vested interest in ensuring I don't get my USD, especially when they don't have the full capital to redeem. You know this will eventually end up in a redemption crisis that will be magnified by shady loans/guarantees that attempt to stave off a de-peg but eventually blows up.
That's really the problem with Tether, they want to be a bank without the regulation, backing, or standard courtesies provided by banks. Everyone will eventually learn their 1920s banking lessons all over again.
I care because I don't require an intermediary to withdraw my USD "IOUs" from a normal bank.
In the case of Tether these intermediaries that decide whether or not I get my USD (Alameda, FTX, etc) are located on the opposite ends of the earth stockpiling cash by playing trading games and have a vested interest in ensuring I don't get my USD, especially when they don't have the full capital to redeem. You know this will eventually end up in a redemption crisis that will be magnified by shady loans/guarantees that attempt to stave off a de-peg but eventually blows up.
That's really the problem with Tether, they want to be a bank without the regulation, backing, or standard courtesies provided by banks. Everyone will eventually learn their 1920s banking lessons all over again.