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NYAG stated that "Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie" and banned it entirely from New York.

"I don't like Tether as it's no different from fractional reserve banks,"

That reserves don't add up to the currency in circulation is somewhat similar to a central bank but the similarities end there and they are basically nothing alike.

Will a government bail out Tether when its institution goes bust? If not then, then it is far worse than fractional reserve banks.