Could Tether (USDT) be really called decentralized cryptocurrency?

[Necez]

The first sentence in the white paper of Tether (USDT) says the following. A digital token backed by fiat currency provides individuals and organizations with a
robust and decentralized method of exchanging value while using a familiar accounting unit.

Now don't get me wrong. I use USDT a lot, in fact I love it. The fixed price of $1 while being a cryptocurrency makes crypto transactions for purchasing services easy and beautiful.

But I keep thinking of how original paper money was created. In history we had gold for trading. Then gold became inconvenient so bankers offered to hold gold for paper that verifies how much gold is owed to customers. Then this paper became more convenient and was used instead of gold with the trust that its backed by gold. Then this paper a long time later became a currency that isn't backed by gold anymore.

Could the same happen with USDT. If everyone decided to claim original $$$ with their USDT, would Tether Limited issue it all making the price worthless?

Anyway the point I am trying to make is that Tether (USDT) is centralized around the Tether Limited's will to keep it going. This company is basically like a bank too.

[1714004740]

1714004740

[1714004740]

1714004740

[1714004740]

1714004740

[1714004740]

1714004740

[SquirrelJulietGarden]

No. A centralized company does not want to create a decentralized cryptocurrency (coin or token), never.

USDT is created by a centralized company and the company try to diversify the chains they use from Bitcoin (OMNI layer) to ERC20, TRC20, EOS chains the USDT has still been a centralized stable coin. Tether can not deny the fact.

[hatshepsut93]

No person with even the most basic understanding of cryptocurrency would call Tether a decentralized cryptocurrency. Obviously, Tether the company is just being dishonest when they claim that the token is decentralized, they did that because "decentralized" was/is a very hyped thing. Of course they mean that it's decentralized because it exists on Ethereum network, so there's no middlemen when you move tokens, but the fact that the supply is created in a centralized way, the fact that the peg is maintained by a centralized company is enough to disqualify Tether from being decentralized.

[mersal]

DAI is the only stable coins which is decentralized but USDT is centralized and more risky to hold than the fiat money. Value of tether can goes to zero anytime due to the inflation around it, people don't really realize how much tether are getting printed, if they comes to know then for sure they will move to other cryptos which will eventually make the tether to be worthless.

[poodle63]

in a more simple perspective USDT like what you said that Tether is like bank is kinda true. they basically own the whole USDT thing and the money to back it up reserved by them. But, what keeps USDT value is because it's backed by real money otherwise it will worth nothing. In the scenario above you mentioned, if all the usdt holders suddenly cash it out or exchange it to real money then it'll be worthless indeed. Except, tether still have some money reserve left and resulting excess USDT while at the same time destroy all the USDT that already exchanged to real $ then the price will be the same.

[JeffBrad12]

Tether will never become a decentralized entity. Tether has brought the fiat currency into the new form to be used to fix that volatility problem that has faced by so many people in the past. Tether has fully control over the contract and the company can freeze any tether that looks suspicious i.e stolen tether from the hacked exchange site.

It's just a dream and tether must also comply with the regulation to issue the digital currency backed by the fiat money.

[masterrex]

I think Tether has both with a centralized and part decentralized function, But due to its larger USDT circulation Im already doubting that if it was really backed with $fiat (USD) with I is to 1 ratio, Because most of the fiat backed stablecoins has not more that 100 Million total supply thats why Tether should clarify that issue on their part because until it wasnt clear the doubt will still remain.    

[Zazzu]

Nothing is completely 100% decentralized on the market, more than 50% of the bitcoins have been stored in less than 100 wallet addresses, so decentralization is just an idea we would like to think that way but it's not happening, USDT is not decentralized and that is why the price could be stable around 1$, It wouldn't be like that if it was decentralized, like DIA!

[marlo1001]

There are almost no real decenetrlization in crypto. Every project is centralized more or less. In terms of mining power or owners. And no, tether is not decentralized at all

[New_order]

The first sentence in the white paper of Tether (USDT) says the following. A digital token backed by fiat currency provides individuals and organizations with a
robust and decentralized method of exchanging value while using a familiar accounting unit.

Now don't get me wrong. I use USDT a lot, in fact I love it. The fixed price of $1 while being a cryptocurrency makes crypto transactions for purchasing services easy and beautiful.

But I keep thinking of how original paper money was created. In history we had gold for trading. Then gold became inconvenient so bankers offered to hold gold for paper that verifies how much gold is owed to customers. Then this paper became more convenient and was used instead of gold with the trust that its backed by gold. Then this paper a long time later became a currency that isn't backed by gold anymore.

Could the same happen with USDT. If everyone decided to claim original $$$ with their USDT, would Tether Limited issue it all making the price worthless?

Anyway the point I am trying to make is that Tether (USDT) is centralized around the Tether Limited's will to keep it going. This company is basically like a bank too.

USDT was never a decentralized platform right from day one, I don't know where you see this information from, USDT never even tried to go decentralized, they are like ripple but stable coin, the only decentralized stable coin I knew of is DAI but still I prefer USDT and BUSD

[mindrust]

Can't they even freez your balances in your USDT accounts? I don't think that qualifies for a decentralized currency.

As long as it has an issuer and its supply is controlled, it still can't be decentralized because someone is controlling the supply.

[studio1one]

No man sorry but, the only true decentralized stable coin I know of is DAI. All other stable coins (that I know off) can freeze your tokens if they feel like you are doing something wrong but not in DAI. I doubt USDT can ever truly become decentralized.

[Novatech8]

Tether ( USDT ) and XRP ( Ripple ) are confirmed centralized crypto project, who told you that USDT is decentralized? That's a misleading information OP, if USDT was decentralized they won't be able to freeze stolen funds and illegal money on their blockchain, you need to do good research before raising claims

[shoreno]

Tether ( USDT ) and XRP ( Ripple ) are confirmed centralized crypto project, who told you that USDT is decentralized? That's a misleading information OP,

no one told him that usdt is decentralized but he said  that he only read it on the whitepaper of the usdt . i think what the usdt team tryin to say is that its only decentralize when exchanging the coins or it has a decentralized element but the rest of the concept  are centralized . i think ripple is not like usdt that are more centralized because value of ripple is like other cryptos .

if USDT was decentralized they won't be able to freeze stolen funds and illegal money on their blockchain, you need to do good research before raising claims

did that already happen before ? then that was nice because they can control scams , hacks and other illegal acts. no true decentralized system can do that but isnt that useful ?

[int03h]

Tether is a centralized currency and it is issued by the Tether company. It is only provided on different blockchains. Tether's value is stable as it is collateralized with dollars in the banking system.
A decentralized coin in the stablecoin system will be the DAI.

[tvplus006]

No man sorry but, the only true decentralized stable coin I know of is DAI. All other stable coins (that I know off) can freeze your tokens if they feel like you are doing something wrong but not in DAI. I doubt USDT can ever truly become decentralized.

DAI is really one of all the stablecoins on the market that is decentralized. And I do not understand why exchanges do not promote DAI in terms of creating trading pairs for this token. This is the reason for the low liquidity and total volume of transactions of this token in relation to USDT

[icekohl]

Of course not, it's just USD issued on a blockchain by a company. Users need a cryptocurrency with a stable value in the face of major market fluctuations. But for now we don't have a better stablecoin option than Tether because of its popularity.

[X-ray]

It could not happen with USDT.

Remember this when people have agreed to use or buy USDT and when they have exchanged their assets into the USDT form and they have agreed if it's the same like their funds were getting exchange site the fiat that has already owned by tether company to backed USDT.

People will never do any claim to the reserved funds that has owned by tether.

The concept looks so complicated but i believe if that will never happen with tether.

[bekti3]

USDT itself is a Stablecoin that has a value of 1 US Dollar per Token, and keep in mind that USDT is still in position number 4 on Coinmarketcap, with a Market Cap of $ 4,686,709,510. then essentially USDT stood in several chains such as ERC20, TRC20 and Chain. so it aims as a Stable Cryptocurrency that can replace Fiat USD financial transactions.

[mindrust]

USDT itself is a Stablecoin that has a value of 1 US Dollar per Token, and keep in mind that USDT is still in position number 4 on Coinmarketcap, with a Market Cap of $ 4,686,709,510. then essentially USDT stood in several chains such as ERC20, TRC20 and Chain. so it aims as a Stable Cryptocurrency that can replace Fiat USD financial transactions.

Where are you getting your data from? USDT's marketcap is ~$16.25billion and It is not on the 4th spot either. (it is the 3rd)

Where did you copy paste this from?