- On August 31, the Central Bank of Bahamas released a report that detailed, among other things, the summary of foreign liabilities, including deposits in foreign currencies
- Under this section, the report shows that inflow of foreign currency from non-residents in June 2020 was $5.1 billion, with similar amounts in preceding months
- Tether’s market cap in June 2020 was $9.2 billion, up from roughly $4.1 billion in January 2020 - but data from the report seems to suggest that Tether does not have enough to back its total supply
- It could theoretically be possible that Tether has been providing the funds, but it does not seem likely
- In March 2019, Tether changed its policy to state that the Tether supply was also backed by loans to affiliate companies, in addition to any dollar reserves
- Tether announced a banking relationship with Bahamas' Deltec on November 1, 2018, saying that the bank reviews it on an ongoing basis and assessed its ability “to maintain the USD-peg at any moment”
- At the time, the letter showed that Tether had roughly $1.8 billion in reserves
Report Shows That Tether Might Not Hold Enough Fiat Reserves
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