Does it matter if it's transparent alone, though? Alright, so we can verify that there are about 66.83B USDT according to
coinmarketcap. Does it have a point if there can't be consensus found in a monetary policy and users have to just follow what one entity says? Sure, there's transparency of their action, but not of their arbitrary intentions. I can't do something if they decide to freeze some Ethereum addresses or inflate USDT to infinity by tomorrow morning, other than to verify it.
I don't think anyone can verify exact supply of US dollars, and it's monetary policy is even worse, yet
everyone many people are still using it.
Yes I know anyone can freeze your USDT tokens, and people tried to make better alternatives (USDC, DAI, etc.) but they are all crap because they are based on ethereum blockchain.
If something can be reversed once like eth chain, that means it can be reserved again.
I don't think that's how stablecoins are defined.
I really don't know exact definition of crypto stablecoins, there are some algorithm based and pegged to it's based shitcoin, like in case of Terra debacle.
There are even some stable coins that are pegged to Gold, like for example Tether Gold.
https://gold.tether.to/The definition of 'stable' is 'when measured against USD'. Just like they measure stocks and other assets against the USD; they do so with cryptocurrency and if a currency is more 'similar' to the US dollar, it's called 'more stable'. But I argue that the dollar itself isn't stable, and I don't think anyone doubts that.[/quote]
Wait a minute, and what happens in time of hyperinflation like it was in Weimar Republic and other countries?
In United States dollar crashed in great depression, and nobody could say this was stable currency.
They all claimed Mark and other failed fiat currencies were ''stable''.