I don't particularly see a problem with the assets backing the stable coins because the banks have done worst with loans. They collateralize everything and it might be subjective towards what that value could be. In a way, I prefer the HBD way of getting $1 of HIVE for 1 HBD.
It really is scary when things are frozen and I really hope they don't cave to the authorities. However I don't have much faith in that because they probably won't survive long if they show a strong stance.
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The fear is what happens if, instead of $1 for each Tether out there, there is really only $.25. This is where the instability could enter the picture.
Of course the solution is the algo driven tokens that have a lot more transparency since no USD holdings is required.
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