Although this concept makes sense on paper, things have not been very easy for USDT so far. Otherwise, they could not give any guarantee of the value of one USDT to be equal to US$1. This process keeps the US Dollar value equivalent of all USDT at all times. The responsible company to create the Tether is responsible for issuing USDT in circulation. Tether is a “price-stable cryptocurrency” and “pegged” directly to the US Dollar. To trade USDT, open a live account with AtoZ Markets approved brokers: Moreover, in September, Tether announced to burn 400 million tokens. For example, the Tether or TrueUSD is the concept to hold actual dollars in reserve, which are redeemable for the token.

They hold some type of guarantee and manage the supply to trade the coin for no more or less than $1. However, all of them generally work the same way. There are a number of stable coins in circulation nowadays with several attempts to be stable.Įach stable coin has a unique mechanism. However, the “Stable coin” is a cryptocurrency that has a stable value. USDT is a blockchain-based Stable Coin that is used for trading for $1 USD. This is why there are such currencies as USDT. However, some cryptocurrencies take it upon themselves to peg their value to the US Dollar, as it makes transacting in cryptocurrency slightly easier for amateur users. The value of the US Dollar is supported by the government of the United States. This is the reason because more and more USD users have been interested in virtual currencies such as USDT. Although the consumers feel that the US Dollars have actual worth, the currency itself is not backed by any tangible. Most cryptocurrency enthusiasts believe that the money issued by a bank or government has no actual value. However, the situation will not change soon as the value of Bitcoin will always be Bitcoin, regardless of its USD price. For example, Bitcoin is valued in US Dollars first before looking at the value in local currency. Every currency, asset and often cryptocurrency are denominated in USD value. A quick google search on the topic will give you a wide range of articles why they're so controversial.Īnyway, to answer your question, yes, USDT is probably the closest to representing the value of an actual dollar, but, as i said, it is NOT an actual dollar, and you should be really careful using them, or preferably not use them at all.The US Dollar is one of the leading currencies in the world. (I highly doubt this would be allowed by the ECB and subsequently their commercial bank), If anyone could shed some more light on this and how this would actually work (I fear I might be wrong here.), I'd be extremely interested.īefore thinking you can use USDT as a safe haven, you should note that more often than not, these 'stablecoins' are not backed 1:1, or at least not proven to be, and that while they might be stable as of right now, that that is not a guarantee for the future.

That would mean they would have an account at a EU bank and subsequently at a NCB within the eurozone, which i highly doubt given they operate with and within 'anonymous' accounts. How they are able to represent the euro in the first place within their exchange/framework, i don't know. It makes sense to me that they don't offer a USD trading pair, as binance does not have access to the US banking system, much less so to the or a federal reserve account.

Binance usd vs usdt