Sentences with phrase «fiat reserves»
"fiat reserves" refers to physical or digital currencies that are issued and controlled by a government or central bank, such as dollars, euros, or yen. These reserves are not backed by a physical commodity, like gold, but rather rely on the trust and confidence of the users in the currency and the authority that issues it. Full definition
Furthermore, it is well known monetary policy procedure to lower or increase fiat reserves to impact exchange rates.
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Given that Tether claims to be backed by fiat reserves, this led some to question where that funding came from.
Meanwhile, the Tether capitalization has exceeded $ 1 billion, continuing to cause controversy about Tether's possible lack of fiat reserves to back such a huge amount of USDT tokens.
Bitcoin might also be a hedge against endemic government corruption, the sort he claims could easily steal fiat reserves.
Businesses refused to provide bitcoin payment and trading services within Australia due to limited methods of facilitating fiat reserves.
While the core concept behind Tether tokens is that they are backed 100 % by fiat reserves, users may want to exercise caution given that the company does not guarantee redemption of Tethers and is not formally liable to do so.
Bitcoiners with enough funds to purchase a home must then find a brokerage service or merchant processor to convert their cryptocurrency back to fiat reserves.