From what I ubderstood, it doesnt has to be in cash or it would have been so simple as you said. The money can be in form of bonds, properties, stock shares, …
same thing for banks, they dont have all customers’ money in cash.
that said I agree that people behind tether are shady and lack of serious auditing is very concerning
They claim that 84% of their reserves are held as cash or cash equivalent, with 81% of that in US Treasury notes. Then why do they use some obscure Italian accountant to attest to that? They ought to be able to get a big name firm to attest to having $100 billion in US treasuries.
They also claim to hold 5% of their reserves in Bitcoin, which is 5% too much.
From what I ubderstood, it doesnt has to be in cash or it would have been so simple as you said. The money can be in form of bonds, properties, stock shares, …
same thing for banks, they dont have all customers’ money in cash.
that said I agree that people behind tether are shady and lack of serious auditing is very concerning
They’re not a bank, though. Banks are regulated in terms of what assets they keep, and where. We only have Tether’s word.
https://tether.to/en/transparency/?tab=reports
They claim that 84% of their reserves are held as cash or cash equivalent, with 81% of that in US Treasury notes. Then why do they use some obscure Italian accountant to attest to that? They ought to be able to get a big name firm to attest to having $100 billion in US treasuries.
They also claim to hold 5% of their reserves in Bitcoin, which is 5% too much.