The Paradox of Stablecoins: The Savior or Achilles’ Heel of Crypto?

The collapse of Silicon Valley Bank (SVB) in early 2023 is a stark reminder of how dangerous stablecoins deeply intertwined with traditional finance can be. Stablecoins are backed by reserves held in traditional banks while the blockchain functions solely as an interchange protocol. This setup is wildly different from the truly decentralized vision by early crypto pioneers.