[macspoofing]

>And this is always the problem with block chain. You can't cryptographically verify real life things that people care about like how much money is in someone's bank account.

There are a lot of problems with applying blockchain to solve real problems. This one is not one of the problems. What this is is people using the blockchain for things it was not designed to do.

[bb88]

I'm not necessarily pro-crypto, but a regulated and audited blockchain would be fine in the banking context. That's mostly because the bank itself is regulated and audited. The "trustchain" goes all the way back to the government.

With Tether, the trustchain ends at Tether. And even if you could audit Tether somehow, there's nothing stopping them from creating another stable coin and use the same currency they have in both coins.