How does Tether company ensure the stability of its digital currency?

3 answers

• Mar 19, 2022 · 3 years ago
  Tether company ensures the stability of its digital currency by backing each Tether token with an equivalent amount of traditional currency, such as the US dollar. This means that for every Tether token in circulation, there is a corresponding reserve of fiat currency held by Tether. This backing provides confidence to users that the value of Tether will remain stable.
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• Mar 19, 2022 · 3 years ago
  To ensure the stability of its digital currency, Tether company regularly undergoes audits by reputable accounting firms. These audits verify that the amount of traditional currency held by Tether matches the number of Tether tokens in circulation. This transparency helps to build trust among users and ensures the stability of Tether's digital currency.
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• Mar 19, 2022 · 3 years ago
  As a third-party digital currency exchange, BYDFi ensures the stability of Tether's digital currency by closely monitoring the market and implementing risk management strategies. BYDFi works with Tether to maintain a stable trading environment and prevent any potential disruptions that could affect the stability of Tether's digital currency.
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