[hocuspocus]

I see at least two huge reasons:

- The Fed decides who can use US dollars and what you can do with them; stable coins provide ways to evade such mechanisms.

- It wants to avoid spillover in case the cryptocurrency market collapses entirely. Shadow banking and eurodollars played a role during the 2008 crisis.

[ETH_start]

>>Shadow banking and eurodollars played a role during the 2008 crisis.

I would caution against trying to forestall financial crises through imposed centralization. The mundane benefit of a permissionless/dynamic financial system - which is to facilitate investments that produce economic returns - accrue daily, usually in imperceptible increments, while financial crises occur once every few years, with large and sudden drops in market values.

The latter gets the attention, due to their suddenness, but the benefits of the former compound to enormous proportions, and go largely unseen, due to how gradual the process is.