To get United States Dollar, you need to sell oil, you need to sell mineral resources like gold, etc. You need to export agriculture, etc, and get paid for those services in dollar. This makes dollar a legal tender, it also gives it value.



To get USDT (Tether), you only need to go on Binance, open your Opay wallet, send naira and get USDT.

What makes you think both are the same? It's really hard to get the first kind of dollar because you actually have to sell something of value, like goods or services to get it.

To get the second type of dollar, you just have to use Naira, a currency which can be printed endlessly.

USDT is printed by Tether holdings. The way USDT program code was written allows Tether to remain constantly at a value of ONE, no matter the marketcap, no matter the demand, no matter the supply. It's just a code. Billions of USDT were printed from nothing and sent to different crypto exchanges.

Now, what has CBN done? Since you guys said USDT is same as USD, they don't have to focus on their oil export anymore. They can just use their naira reserve (which they can print at will), open their Binance app and buy billions of USDT with Naira (which they have trillions of)

When it comes to Naira, you cannot compete with the people that print it (CBN). Buhari printed trillions at will.

Now if the government wants to control the exchange rate and reduce it, they start selling off the USDT competitively at slightly lower rate than market value. Obviously, buyers will go for this slightly cheaper rate. Now, this will force normal seller to reduce their rate so they can compete. This is pure market manipulation. But I have to give it to CBN's governor, he beat you guys at your game.

Next day, CBN will go lower. People will prefer to buy at the lower rate and that will force normal sellers to reduce their rate in order to get buyers.

Next day, CBN will go lower again. They will keep doing this ad-infinitum. This is what has been happening

Now, CBN isn't just one seller, they have hundred scattered across every platform coordinating this price points. Mind you, CBN is loosing millions of naira daily, but it's a small price to pay to reduce the ever increasing exchange rate.

Remember, they got USDT with a currency they have so much control over and not from drilling and selling oil. They can control this market as long as they want.

This is quite laughable!
Buying usdt to determine the value of a country's currency? Na so easy naim America never buy all the usdt so USD can surpass pounds sterling? Continue with your armchair economics

If u see any appreciation on naira, know your govt has started paying subsidy to defend it by mandating bdc to sell at a fixed rate, which automatically means back to subsidy on naira. Same way they started paying subsidy on fuel, not this jargons u are writing

Bluearrow:
This is quite laughable!
Buying usdt to determine the value of a country's currency? Na so easy naim America never buy all the usdt so USD can surpass pounds sterling? Continue with your armchair economics

If u see any appreciation on naira, know your govt has started paying subsidy to defend it by mandating bdc to sell at a fixed rate, which automatically means back to subsidy on naira. Same way they started paying subsidy on fuel, not this jargons u are writing

The USD exchange rate these past few weeks has been determined by crypto. I followed it carefully. The same rate listed in blackmarket sites where the same rate USDT was selling for on P2P market.

It was only after FG went after crypto did the exchange rate start to decrease. Now I wonder what kind of country will allow their exchange rate to be determined by a crypto coin.

SenecaTheYonger:


The USD exchange rate these past few weeks has been determined by crypto. I followed it carefully. The same rate listed in blackmarket sites where the same rate USDT was selling for on P2P market.

It was only after FG went after crypto did the exchange rate start to decrease. Now I wonder what kind of country will allow their exchange rate to be determined by a crypto coin.

Let's wait to the end of year!
What is happening is cosmetic approach, they are just trying to suppress the true value of naira, unless they continue paying subsidy on it, it won't last for long. All neighbouring countries with stable currency have these same cryppto platforms in their countries & their currency is not crying. Cryptto doesn't determine the value of a country's currency, it is the economy of a nation that determines the currency value.

Bluearrow:

Let's wait to the end of year!
What is happening is cosmetic approach, they are just trying to suppress the true value of naira, unless they continue paying subsidy on it, it won't last for long. All neighbouring countries with stable currency have these same cryppto platforms in their countries & their currency is not crying. Cryptto doesn't determine the value of a country's currency, it is the economy of a nation that determines the currency value.

Yes, it's all cosmetic. I'm actually curious to see how this will play out in the end. How long can they keep this up? Well find out soon

Cryptto doesn't determine the value of a country's currency, it is the economy of a nation that determines the currency value.

This is how it should be in a sane country.

SenecaTheYonger:
To get United States Dollar, you need to sell oil, you need to sell mineral resources like gold, etc. You need to export agriculture, etc, and get paid for those services in dollar. This makes dollar a legal tender, it also gives it value.



To get USDT (Tether), you only need to go on Binance, open your Opay wallet, send naira and get USDT.

What makes you think both are the same? It's really hard to get the first kind of dollar because you actually have to sell something of value, like goods or services to get it.

To get the second type of dollar, you just have to use Naira, a currency which can be printed endlessly.

USDT is printed by Tether holdings. The way USDT program code was written allows Tether to remain constantly at a value of ONE, no matter the marketcap, no matter the demand, no matter the supply. It's just a code. Billions of USDT were printed from nothing and sent to different crypto exchanges.

Now, what has CBN done? Since you guys said USDT is same as USD, they don't have to focus on their oil export anymore. They can just use their naira reserve (which they can print at will), open their Binance app and buy billions of USDT with Naira (which they have trillions of)

When it comes to Naira, you cannot compete with the people that print it (CBN). Buhari printed trillions at will.

Now if the government wants to control the exchange rate and reduce it, they start selling off the USDT competitively at slightly lower rate than market value. Obviously, buyers will go for this slightly cheaper rate. Now, this will force normal seller to reduce their rate so they can compete. This is pure market manipulation. But I have to give it to CBN's governor, he beat you guys at your game.

Next day, CBN will go lower. People will prefer to buy at the lower rate and that will force normal sellers to reduce their rate in order to get buyers.

Next day, CBN will go lower again. They will keep doing this ad-infinitum. This is what has been happening

Now, CBN isn't just one seller, they have hundred scattered across every platform coordinating this price points. Mind you, CBN is loosing millions of naira daily, but it's a small price to pay to reduce the ever increasing exchange rate.

Remember, they got USDT with a currency they have so much control over and not from drilling and selling oil. They can control this market as long as they want.

USDT is not from thin air. Every single USDT minted by Tether is backed up by real USD assets in it's reserve. It's just like a decentralised USD bank account which can be used by anyone.

USDT, USDC, PYUSD, etc. can be exchanged for real USD at 1:1

One major difference between these stablecoins is their level of transparency and trust.

USDC and PYUSD are issued by companies located in the US and regulated by the US government, and so their reserves can be easily proven as they carry out regular audits.
On the other hand Tether (based in British Virgin Island) does quarterly audits of their reserves which is not as regular as the other two stablecoin issuers.