> Obviously Tether (or any private stablecoin like Libra) is even worse than a regulated fiat currency, and should be strictly illegal.
Having a system of tokens that serve as an IOU to a stable basket of goods should be illegal? That's essentially how banks work, you give them money, they give you an IOU. I imagine a stable coin could be designed with enough proofs and audits to give you certainty. I think a well administered stable coin could have a transformative role in many areas that have capital controls, similar restrictions or high inflation.
The learning rate of markets is too slow for it to work. There will be too many tethers and other scams before they can be properly proofed and audited. And after that we learn that it requires tax payers, law makers and nukes to properly secure a stablecoin.
The only reason people use tether is to avoid AML/KYC. It's why the other stable-coins from "legitimate" sellers like Coinbases' USDC aren't used by anyone for anything. If I just wanted "electronic dollars" dollars I'd just fire up my web banking portal. The only value it provides is crime. Yes, it should be illegal. In fact it probably is.
Having a system of tokens that serve as an IOU to a stable basket of goods should be illegal? That's essentially how banks work, you give them money, they give you an IOU. I imagine a stable coin could be designed with enough proofs and audits to give you certainty. I think a well administered stable coin could have a transformative role in many areas that have capital controls, similar restrictions or high inflation.