Comment by kikimora

> And, pray tell, what happens when the reverse happens, and a death spiral begins?

Interest drops to 1%, nothing else. We talk about USDC on Kraken or Coinbase, both regulated by SEC, FINRA and having ATS license (only 50 such licenses granted in US).

> I make cross border payments quite regularly

This is easy only between very few countries. Try Africa, India, former Soviet republics. You can send them money, they might not be able to receive.

> Tether's USDT is currently the world's largest market capitalization stablecoin…

This is why I only talk about USDC and others, not Tether.

> The reason I have faith in a fiat currency, and not crypto (of any kind) is the regulation

Stable coin is a different form of fiat operated by a regulated institution. They actually much more regulated compared to banks. For instance, they cannot use fractional reserves, everything must be 1-1 backed by cash equivalents (bonds and friends).

> There's zero advantage to use crypto

Wire cost me $27, USDC transfer cost $1. Wire takes 1-2 days, USDC transfer - 15 seconds. I can get 2-10% interest on my crypto holdings without any commitments, I can make 0.5% with savings account or 3% if I commit to a yearly deposit. I cannot get USD nominated debit card, but can from a crypto exchange. So on and so forth. Life is easy when you are a US Citizen, much different if you come from Russia, Iran, India, most of Africa, most of the world, really.