What is Theter, the stablecoin that the 'Old Lady' wants

Tether. But what is it? In short, according to Coinbase, it is a stablecoin cryptocurrency designed to maintain a stable value pegged to a traditional currency, mainly the US dollar (USD). This stability distinguishes it from more volatile cryptocurrencies such as Bitcoin and Ethereum, whose price can fluctuate greatly in a short period of time.

Tether was launched in 2014 and its best-known token is USDT (United States Dollar Tether). The idea behind USDT is that each Tether token has a value equivalent to USD1, facilitating digital transactions without significant price fluctuations.

The operation is based on a reserve mechanism: according to the issuer, Tether Limited, for every USDT token issued, there are reserves of fiat currency or equivalent assets held in the same amount or more. This allows USDT holders to have confidence that the value will remain close to USD 1.

Tether is defined as a 'fiat-collateralised' stablecoin, i.e. backed by traditional cash reserves or liquid financial instruments, such as cash or government bonds, which help maintain the peg (peg) to the dollar.

This cryptocurrency is used on many different blockchains (e.g. Ethereum, Tron, Solana), allowing users to move value quickly between platforms without the instability typical of other cryptocurrencies.