[jgautsch]

Whenever people compare Tether to fractional reserve banking it ignores important details.

Some important differences:

- Your bank tells you it's fractional reserve, Tether tells you they're full-reserve (deception for financial gain is fraud)

- Bank accounts are protected from bank insolvency by FDIC insurance

- Bank risk appetite is modulated by the rates they pay for that FDIC insurance

- The Fed acts as a lender of last resort, guaranteeing the liquidity of your deposits, in order to prevent a bank run

The Fed has the muscle to keep fractional reserve banking propped up. Tether may be lying about being full-reserve, and don't have the muscle to stop a tether run, which could get ugly.