Aren’t stablecoins also backed by a central authority that guarantees it will always exchange the coins for a fixed amount of cash? That’s what makes them stable right? At least the major ones like Tether.
And by now we have seen many cases of stablecoins predictably crashing when trust in that backing authority dissolves. Most famously UST/Luna but it’s a long list.
I suppose they are useful for covert transfers, and the actual transfer mechanism is decentralized. But they are strictly worse than normal currencies for storing wealth, since the backing authority is a private company with virtually no oversight. And the utility for transactions would vanish if you were not confident that you can exchange it back and forth with cash immediately before and after the transfer.
And by now we have seen many cases of stablecoins predictably crashing when trust in that backing authority dissolves. Most famously UST/Luna but it’s a long list.
I suppose they are useful for covert transfers, and the actual transfer mechanism is decentralized. But they are strictly worse than normal currencies for storing wealth, since the backing authority is a private company with virtually no oversight. And the utility for transactions would vanish if you were not confident that you can exchange it back and forth with cash immediately before and after the transfer.