Are there really any risks with stablecoins?

With over a $100 billion worth of stablecoins issued across different public blockchain networks, it is safe to say that stablecoins are an accepted and a welcome innovation that has gained impressive adoption.

That is to say, people like to use stablecoins for their blockchain transactions. That's not surprising seeing that stablecoins are regarded as secure assets in the highly volatile nature of the crypto market.

Given that the value of stablecoins are characteristically pegged to the value of real world assets would automatically make that real world asset a backer for the stablecoin. This has given majority of stablecoin users a big sense of security in terms of protection against a diminishing value of their capital.

However, critics also have a thing or two to say regarding the said or should the right word be "supposed" security that stablecoins are reputed tp assure.

There are concerns that have been expressed in the past that stablecoins might infact not be all that stable.

Some people think that if stablecoins are indeed adopted fully around the world they would bring about a systemic risk and cause damage to the entire financial system.

There have been suggestions that regulations might be an effective way to make sure that stablecoins remain stable and no funny affairs come up.

Watch this video to learn a thing or two about how stablecoins work and why they are presumably unstable.

Our question though is, what do you think, are popular stablecoins like the USDT and BUSD worth a relook?

Let us know your thoughts in the comments.

Video was curated from Cointelegraph