billyjoeallen
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billyjoeallen
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January 16, 2015, 08:19:27 AM
Last edit: January 16, 2015, 08:37:11 AM by billyjoeallen

https://www.bitfinex.com/pages/announcements/?id=31

What do you guys think about this "tether" thing ?

it seems to be a US nubits

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Tether currency is 100% backed by actual assets in our reserve account and can be viewed and verified in real-time.

might be really interesting Smiley

Well it reintroduces the trusted third party, the elimination of which was the main innovation of Bitcoin. How it can be 100% transparent is something I'll have to look into more carefully before I can comment on.

EDIT: ok, so they hold their reserves in a bank account. That makes them vulnerable to the bank going under, assets seized by the government, embezzlement, etc. AND they require KYC compliance.

There would be some applications where this would be useful, kind of like DWOLLA was used to make deposits and withdrawals to MtGox, but basically this is just a faster lower cost wire transfer.