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Trust in stablecoins 'infinitely more important' than collateral

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cointelegraph.com

In light of recent market effects due to the collapse of the Terra USD (UST) stablecoin, several questions should be answered about what makes a stablecoin usable as the crypto market expands.Co-founder of crypto financial service provider VegaX Holdings Sang Lee favors decentralized stablecoins over their centralized counterparts but thinks they must be coins that people can trust, which poses a dilemma for the industry.In a conversation with Cointelegraph on May 13, Lee pointed out that the important utility stablecoins serve in the crypto ecosystem was offering traders a uniform unit of account, like the U.S.

dollar does for the global markets. However, he noted that “the way in which these things are maintained is important, too.”Lee believes that for stablecoins to be truly usable, people have to trust them.

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