Comment So-called stable coins aren't. (Score 1) 38
You give them your money and they agree that they will hold on to it. That's a bank.
Multiple stable coin providers have been caught giving out the underlying assets when they're not supposed to. Often by taking extremely high risk bets with the money.
Because they aren't Banks you don't have any recourse when they do that and because they aren't Banks you aren't insured and because they aren't Banks there are reams and reams of regulations and paperwork they do not have to file with anyone so they can hide things on their books a bank can only dream of.
It's something that a functional civilization would nip in the bud by applying the same banking regulations but more and more we are a failed state.