Hate to break it to you, but anything can legally be taken away from you by the justice system. And fighting the government can put you in prison, too.
Usually LARPers are conscious that they don't have magic or any sword skills. I'm pretty sure the person who you respond too really think what he wrote.
Yet the government went out its way to ban bearer shares, bearer bonds, numbered anonymous bank accounts, large denomination currency, anonymous companies, and all the other methods of anonymous banking.
Seems they were having trouble "taking it away by the justice system."
For the same reason government across the world have pressured or banned exchangers of monero.
GP added the "by the justice system" where OP only said "can be taken away". Both digital and fiat currency can be taken away from you through courts, legislation, trickery, or coercion.
Crypto is surrounded by vast amounts of misinformation, misdirection, or misunderstanding. So you get these myths and generalization propagated through lack of education. "I heard crypto is completely anonymous", "I heard crypto can't be taken away from you". Then someone gets tricked out of their crypto, or uses BTC to commit some crime and gets a quick reality check.
If you toss a bag of cash in a hole buried under a grave in Timbuktu, or toss a bitcoin seed phrase in there. Cover it up, leave Timbuktu back to your western country. Then vow to die before giving up the location (you can claim torture or whatever works, but many people in history have decided to be tortured to death without giving up the information). You can be essentially 100% assured it will never be taken. Possible with both fiat and crypto, though you'll be digging a bigger hole to bury an upward amount of dollars, yet crypto is infinitely scalable with the same size hole.
From a black and white viewpoint the possibilities are the same but the practicality is a bit different (then realize with crypto the hole might only exist in your mind). Maybe the government has control over your body but there is some victory in not letting them have your assets even if they take your life and without having to destroy the underlying value.
Personally I think a cleaner distinction is bearer assets vs titled assets. Both can be taken but bearer assets can be made impractically difficult to seize, especially against the masses at once, whereas titled assets (like bank accounts and deeds) can be taken by the government trivially (ex: in US, IRS can freeze without even a warrant) and at mass scale quickly.
If you're being detained for the rest of your life while your money languishes in a hole in Timbuktu, it has been taken from you. Money is only valuable because it has utility. If you can't use it, it's not yours.
> You can be essentially 100% assured it will never be taken.
If we take the creative approach, then according to the equivalence of inertial reference frames in the principle of relativity, taking you away from the money is exactly the same as taking the money away from you. Taking the money from you don't imply someone else must have it, just that you don't. Someone could take your HW crypto wallet even if they can't access the money, happens a lot with wallets confiscated by the government.
But ok, the original goalposts were set at the difference between stablecoins and fiat with regards to how easily they can be taken away from you. There is no difference for all practical purposes in any non-hyperbolic situation.
Why do you think stablecoins cannot be taken away? There are already many cases where eg Tether got a court summons and handed over the contents of certain wallets to the local authorities.
The original stablecoin, DAI, used since 2017 by a lot of people living in countries ravaged by horrible inflation cannot be taken away.
It can just be a smart contract with overcollaterised crypto backing it. And the idea is kind of genius.
All the USDT and USDC which appeared later on a just "proxy" for "real" dollar hold by Tether or Circle. There is nothing permissionless or decentralized about them.
So "stablecoin" can mean very different things in practice.
It's just LARPing.