Should you really treat stablecoin as mainstream cryptocurrency?

economictimes.indiatimes.com:

cryptocurrency and the increasing use cases that investors have noticed have compelled many of us to invest in digital assets. Large returns noticed by currencies like bitcoin and other cryptocurrencies in recent years have pumped up the demand, making the market all the more volatile. In such a market, how does one reduce the risk and maximize their return? That’s when stablecoins come into the picture. Stablecoins, simply put, are cryptocurrencies with very little volatility and stability in prices, as they are backed by cash and cash assets, keeping their prices predictable with minimal risks. Since the chance of a cryptocurrency going from a million dollars to insignificance is a possibility in a very short span of time, stablecoins are used to cover the bridges between fiat & crypto for payments, lending, trading and alternative banking transactions. However, currencies such as bitcoin and ethereum are highly volatile as they grow and fall in erratic patterns. This is something stablecoins eliminate. But given its nature of being backed by fiat itself, it raises the question of whether a stablecoin is indeed a cryptocurrency or a digitized version of fiat currency. Your guess here is probably the same as ours. Stablecoins fall in the grey area, drawing similarities from both the worlds.

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Fiat-backed stablecoins are constrained by all of the regulations that come with fiat currency, compromising the efficiency of the conversion process and the potential efficacy of the digital asset itself. For example, Facebook’s Libra currency promised a stablecoin backed by a basket of global fiat currencies,