Btw, backing and promises of redemption are two different things.
Deposits at a regular bank aren't backed by fiat. The bank promises to pay you back in fiat, but they don't keep dollar bills in a vault. The promise is backed with all the bank's assets. Ideally, they have a think equity cushion, so that even if the assets take a hit, the promises don't.
Deposits at a regular bank aren't backed by fiat. The bank promises to pay you back in fiat, but they don't keep dollar bills in a vault. The promise is backed with all the bank's assets. Ideally, they have a think equity cushion, so that even if the assets take a hit, the promises don't.