Am I right in understanding that with BTS is there is no guarantee that you can redeem 1 BTSX for 1 USD because you do not need to deposit a USD somewhere to create a BTS in the first place?
But is that not the very definition of pegging?
I don't think so, there is a difference between pegging the value of something to something else, and saying that it is back by that other thing.
I think the Yuan is pegged to the US$.
Generally, to peg the value to the dollar they would have to buy and sell bitUSD to keep it at a value of $1. That means there is a central bank and the value of bitUSD is being manipulated, right?