[spiddy]

> Stablecoins piggyback on the legal aspects of dollars, and as long as you treat them as dollar-denominated assets, you're fine. The second you treat them as dollar-equivalents, you run the risk of a change in the value of that asset being something that the government is forced into supporting.

Why is that scenario worse than now? Why is bank the preferred medium to support when they default?

[tim333]

It's getting worse because they are becoming more mainstream. The kind of scenario where the government might have to bail out is US Bank lends billions to something like Coinbase which holds lots of Tethers. Then Tether goes to zero, Coinbase bust, US Bank needs bailout. We're not there yet and it's best avoided.