Uhm, hate to break it to you, but you can only have a run on the bank as a result of fractional banking - which is systemic in the fiat banking system due to regulations only requiring they hold 10% of customers' deposits.
You literally cannot have a bank run on USDC or BTC because they do not do fractional banking (i.e loan out the money you deposited).
With stable coins you can have insolvency which is worse than a bank run probably (because no government insurance). Stable coins are the worse to keep cash - higher risk than a bank account but no interest. The only logical uses for them is online gambling and money laundering.
You don’t own a USDC. Instead some random offshore company owes you a dollar.
Same way you did with svb. A stable coin is basically a bank. They take in assets and generate tokens against them. If there is a mass withdrawal they would need to sell assets possibly at a loss to cover it. If they a duration mismatch then they eat the losses come withdrawal time. Go too fast and they depeg and boom
The majority of business capitalization isn’t a loan, but invested savings in return for equity. All of venture capital, the stock market, small business using their own funds, etc.
Mortgages are collateralized, and business loans can be secured with assets or equity. I suspect the majority of bank loans are mortgages (?). Interest rates do not need to be high without fractional banking, since loans can be secured.
Banks can issue mortgages without fractional banking… Investors pool capital and start a bank. The bank loans money for homes and makes a profit from interest.
Yes you can with stable coins, the money held to back USDC was held in regular banks like SVB, some of which would have gone poof if not for the Fed has not guaranteed all SVB deposits. That’s why USDC depegged before the deposit guarantee was announced
You literally cannot have a bank run on USDC or BTC because they do not do fractional banking (i.e loan out the money you deposited).