USDT - What do you predict will be the outcome?

[little Phil]

Hi Everyone,

Just curious what your speculation would be on the future of USDT. I know there has been some controversy as to whether they actually have the 2.7 billion odd dollars they claim are pegged to each USDT. I know it may be a long shot but do you think with banks moving into the cryptospace, that there will eventually be a system similar to how banks do fractional lending so in effect they would only need 10% of USDT value in actual USD?

[makishart]

Hi Everyone,

Just curious what your speculation would be on the future of USDT. I know there has been some controversy as to whether they actually have the 2.7 billion odd dollars they claim are pegged to each USDT. I know it may be a long shot but do you think with banks moving into the cryptospace, that there will eventually be a system similar to how banks do fractional lending so in effect they would only need 10% of USDT value in actual USD?

It looks like there is an announcement about that and it seems like every tether has backed by each USD. This has stated by the lawyer of tether. I thought that the banks are only interested to move into the blockchain system because  they can reduce a lot of operational cost.

[pranazzs]

What about the following USDT news https://www.newsbtc.com/2018/07/01/security-firm-identifies-potential-tether-usdt-double-spend-bug/
whether people will leave or will still choose USDT?
It looks like USDT should be more upgraded about its security.

[little Phil]

It looks like there is an announcement about that and it seems like every tether has backed by each USD. This has stated by the lawyer of tether. I thought that the banks are only interested to move into the blockchain system because  they can reduce a lot of operational cost.

I think initially they would move in to try maintain dominance over financial service markets, which to me makes me think it would include finding a way to do fractional lending since their current business model allows them to 10x their money, eg I deposit $10 into savings and as a result they can lend out $10 to 10 different people. They make (for example) x% off each person's borrowed $10 and pay me a lower % on my $10 deposit, they basically have a licence to print money proportionate to their total deposit values.