Most widely used cryptocurrency is not Bitcoin, but Tether the trading volume of which is about $21 billion per day. It is 18 per cent higher than that of Bitcoin on a monthly basis.
Tether’s management is not known. It is issued by a Hong Kong-based private company. The same proprietors own the crypto exchange. How the supply of Tether is increased or decreased is not known. It is also not known how much of the supply is covered by fiat reserves. Tether is not audited independently.
In countries where crypto exchanges are banned, people can buy Tethers by paying cash on the counter. Tether is out of reach of the US Government. Most crypto exchanges still do not have bank accounts, and cannot hold dollars on behalf of the customers. They use Tether as substitute. People use Tether without realising they are using it. They may be under the impression that they have dollars in a bank account somewhere.