Tether Limited has told people that a USDT is pegged to the US dollar. How are we sure that these crypto companies have enough money to back all the USDT they issue? Who audits their account and how trustworthy are these auditing firms? Besides the government freezing their accounts people holding these stablecoin are at risk of being scammed by the issuing companies. It will be far better to keep the dollar issued by a Central Bank than to hold stablecoin issued by a company controlled by an individual or a group.
Exactly. This is something people usually forget. Even if Tether guys were the most honest company on earth and their token were 100% backed by actual dollars, it still doesn't reduce the risk of this centralized token simply because the US government can decide to shut them down some day and that is the end of this centralized token in a blinking of an eye.
Centralized cryptocurrencies are terrible and super risky but at the same time they are tools that people use and will continue to use specially if they provide a utility like what Tether does.
The only thing people should be aware is the risks they are taking and avoid delusions of having security.