What is Money? Central Banks and Cryptocurrency Stablecoins

July 31, 2020
Yesterday, while going over the final draft of this 4th in the series, 'What is Money?', I was disturbed by the digression into stablecoins and went to bed thinking that I will have to split this essay into two parts, central banks and stablecoins, but the two are similar
Central banks create money out of thin air and so do stablecoins
You sell your crypto and accept tether
It goes into your exchange account, until you need it
It's a cryptocurrency bank
They receive your cash and you get their tokens, but do you realize what happened?
You just made an unsecured loan to a stranger who submitted no financial statement or loan application
Like banks, your deposit isn't yours any longer
Tether owns the cash from the sale of your cryptocurrency
If you sold 100 bitcoins, that's a lot of money to trust to a stranger without any security for the loan
Should you trust tether, out of convenience?

This is Part 4 What is Money?

Here's the link to the May 21, 2020 article:
https://www.webwire.com/ViewPressRel.asp?aId=259360

Bitcoin, cryptocurrency, tether, central banks, money, currency, economy, USD