I know banks. I know how shitty they are and how they can go bankrupt. They are protected by so called “law” and yet they scam people every day. Still… I don’t know stable coins that much. I don’t know who (really) is issuing them, if they are backed by anything, what will happen to hem if the issuer exchange goes down etc…
When I compare stable coins to the FIAT in a bank account, I choose banks tbh. That doesn’t necessarily mean that stable coins have no use. They do. But I don’t trust them with my life savings.
Actually Bank is not secure and recommended place for saving money, in my country many cases happening with Bank's costumer after losing their money and investigate stole by Bank employees but we can get refund back. What happen if Bank faced bankrupt and there are not chance to get back our money. But for choosing between stable assets in coin or having in the Bank seems better in stable coins, we have own controlling regarding with stable coins holding like USDT with ETH network. Bank can't protect or refund our money when they our account got hack and their answer is our fault, the same answer and not responsibility yet when Bank get bankrupt or some Bank employees are scammer and forget with hour much our saving there. I don't know what regulation in other country when Bank's member loss their saving will get protect and Bank refund or money? in my country is not yet.
As I have witnessed, there are cases when we deposit money in the bank and lose it and still get compensation, but there are also cases when we don't get compensation and ignore. As I see it, there are many factors involved, and resolving it depends on each case and takes a lot of time. It should not be said that all banks are irresponsible. If you deposit your money in a reputable bank such as a central bank that is directly regulated by the government, that is unlikely to happen.
But there's no denying that banking isn't as secure as we think it is. There are still many vulnerabilities that can be exploited. It can be said that nothing is perfect and that is why diversifying assets and diversifying where assets are stored is necessary.