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Tether claims that 84.7% of its reserves are cash equivalents, but a deeper review reveals that only 0.69% represents actual cash. This discrepancy raises alarm bells about the safety of users’ investments, especially when considering the company's history of freezing accounts and banning addresses. Similarly, USDC operates with backing from stable entities but still involves centralized control that poses risks to users.
The Rise of CBDCs
Central Bank Digital Currencies (CBDCs) are increasingly viewed as the antithesis of the decentralized ethos of cryptocurrencies. Scott warns of their potential to compromise privacy and personal freedom, mirroring the concerns associated with traditional financial institutions.