Exchanges buy Tether directly using USD. They must send USD to the Tether bank account and receive Tether in return.

As I said, it is a product for companies, not for consumers.

I do not want to defend this product because I find it very bad and insecure. Moreover, I believe in the great possibility of it being enormously used for money laundering and tax evasion.

But what needs to always be clear is that it is not a stable coin for the consumer. It is only a guarantee for exchanges. A more practical way of managing a business and getting away from taxation and enforcement.

It is quite common for banks and governments to freeze exchange accounts and companies that work with cryptocurrencies. In this case, the Tether appears as a facilitator to escape this.