Stable coins has some benefits, despite some setbacks.

[Bobcrypto]

One of the commonest concerns for stable coins, especially the Fiat backed stable coins out there is their continuity potentials and strengths. Stable coins faces some drawbacks like the Centralization risks and regulatory uncertainty.
Centralization of stable coins means that businesses must trust these issuers. Issuers had claimed that they have reserved funds and can redeem the stable coin when the need arises. I think that transparency may also be a problem for Stable coins issuers.
Regulations of the crypto ecosystem is still lingering and stable coins may face strick rules in certain regions that could hinder their wider adoptions.
Now, besides all this issues or drawbacks, what are the benefits of stable coins? let discuss.

[Stuart]

When the crypto industry starts facing regulations, the stable coins like USDT and USDC will be first to be either affected or adopted into such system.

One benefit I enjoy about the stable coins (USDT to be precise) mostly is the fact that storing my native fiat currency in it keeps the value and when the native currency depreciate, the value in USDT yields more profit. So, with it, I have no issues of depreciation against my native currency.

Using it in trading is also interesting as it has more pairs than any other coins in the market.

[rdluffy]

When the crypto industry starts facing regulations, the stable coins like USDT and USDC will be first to be either affected or adopted into such system.

One benefit I enjoy about the stable coins (USDT to be precise) mostly is the fact that storing my native fiat currency in it keeps the value and when the native currency depreciate, the value in USDT yields more profit. So, with it, I have no issues of depreciation against my native currency.

Using it in trading is also interesting as it has more pairs than any other coins in the market.

This is a great advantage, especially for people who live in countries where the fiat currency depreciates against the dollar, which is exactly my situation
With the opportunity to hold USDT for example, I was able not to lose purchasing power because of the high inflation in my country and the devaluation of the currency

What's more, it's a good opportunity to put money into DeFi to earn an income rather than just leaving it idle, and have free access to any protocol, without any permission or KYC

[dkbit98]

I would not recommend anyone to hold USDT or any other stable coins for long term storage.
There is a lot of risks that can quickly cause those tokens to lose value because of ban and regulation issues, this especially applies for Tether.
I noticed that USDT peg is not good now and many people are selling their tokens for lower value.
Tether even invested in totally different regulated stablecoin because of EU mica regulations, so expect big changes in 2025.

[hugeblack]

The main drawback is that you may not trust these stablecoins as an alternative to the dollar or a long-term investment. They are just accounting tools to fix your profits in US dollars instead of converting them to cash, which takes a lot of time.


I do not recommend using an unknown stablecoins, especially in a rising market. There is a high probability of its collapse.

[rdluffy]

I would not recommend anyone to hold USDT or any other stable coins for long term storage.
There is a lot of risks that can quickly cause those tokens to lose value because of ban and regulation issues, this especially applies for Tether.
I noticed that USDT peg is not good now and many people are selling their tokens for lower value.
Tether even invested in totally different regulated stablecoin because of EU mica regulations, so expect big changes in 2025.

We can mitigate the risks by being attentive to market news, especially with Tether and its USDT
USDC is also a good option for holding your cryptos in dollars, USDC is backed by Circle

The big challenge is not to go back to fiat due to the various unfair or unjust regulations that may exist in the country, and also the ease of buying crypto again at another opportune moment

[Crwth]

I know that in some wallets, like Coinbase Wallet, you can earn interest just by HODLing USDC. It's something that could make you money just by holding that. Of course, it wouldn't be as much as trading it and getting a profit, but it could be a hedge towards the market. Make sure that you have your profits or something from the bull market. You must know who backs your stablecoin because you might get into the wrong one and lose money.

[MrSpasybo]

One of the commonest concerns for stable coins, especially the Fiat backed stable coins out there is their continuity potentials and strengths. Stable coins faces some drawbacks like the Centralization risks and regulatory uncertainty.
Centralization of stable coins means that businesses must trust these issuers. Issuers had claimed that they have reserved funds and can redeem the stable coin when the need arises. I think that transparency may also be a problem for Stable coins issuers.
Regulations of the crypto ecosystem is still lingering and stable coins may face strick rules in certain regions that could hinder their wider adoptions.
Now, besides all this issues or drawbacks, what are the benefits of stable coins? let discuss.

Stablecoin is created to enhance market liquidity by lowering the barrier for investors in evaluating investment performance as they are accustomed to valuing everything in fiat. Additionally, stablecoin is a way for new investors to easily enter the crypto market, and for old investors to take refuge during periods of high market volatility.

In many countries, stablecoins such as USDT and USDC are the only way for people to access foreign currency and avoid the devaluation of the domestic currency against the US$. I also hold USDT throughout the crypto winter to be ready to DCA BTC & ALTs. I have more faith in Tether than our banks ^^

Currently, stablecoins that share revenue like Ethena USDe are attracting the attention of the community. I think that they will continue to be a hot topic in this bullrun, especially in 2026-2027!

[Stompix]

With the opportunity to hold USDT for example, I was able not to lose purchasing power because of the high inflation in my country and the devaluation of the currency

You still lose purchasing power because the USD also loses, so why not keep your funds in BTC.
I see trusting a company in an offshore country that might block your funds with a click as a really dangerous situation, far worse than just buying USD on the black market.

In many countries, stablecoins such as USDT and USDC are the only way for people to access foreign currency and avoid the devaluation of the domestic currency against the US$. I also hold USDT throughout the crypto winter to be ready to DCA BTC & ALTs. I have more faith in Tether than our banks ^^

I always found it funny that most of the ones that use USD as a safenet come from countries that brag all day about de-dollarization and the death of the dollar, yet I see nobody trading any kind of token paired with the yuan, rial, rupee or ruble.

[rdluffy]

...
You still lose purchasing power because the USD also loses, so why not keep your funds in BTC.
I see trusting a company in an offshore country that might block your funds with a click as a really dangerous situation, far worse than just buying USD on the black market.
...

I think it's very important to always have some USD (it can be USDT or USDC)
BTC is my main asset

It's not as if I had USDT and left it idle for years
I use it for DeFi and I always keep an eye on the market, but I know the risks of Tether or another centralized company

[MrSpasybo]

I always found it funny that most of the ones that use USD as a safenet come from countries that brag all day about de-dollarization and the death of the dollar, yet I see nobody trading any kind of token paired with the yuan, rial, rupee or ruble.

I don't live in countries with governments that want to de-dollarize, so I can't fully understand the specific context that drives their citizens to use USDT. My government always tries to prevent people from owning and holding $US. We can never withdraw $US from our bank accounts and don't receive any interest, even 0.0001%. We even have to pay fees to maintain foreign currency accounts ^^

USDT is the simplest way for us to protect the value of our assets against the devaluation of our local currency. I'm not very interested in stablecoins backed by other fiat currencies because they're not as well-known as USDT and USDC. This is a success for the US for making the $US widely accepted globally, which in turn makes stablecoins pegged to the US dollar more familiar and attractive.

[Stompix]

My government always tries to prevent people from owning and holding $US. We can never withdraw $US from our bank accounts and don't receive any interest, even 0.0001%. We even have to pay fees to maintain foreign currency accounts ^^

Because letting people buy USD or any other currency unrestricted will diminish the value of your own, if everyone wants to buy $ but probably not even one hundred foreigners are interested in buying your denomination the exchange rate will probably go up by 10% a day  This will make more people want to buy USDT which will trigger another devaluation and, this is the reason.

I think it's very important to always have some USD (it can be USDT or USDC)

I can wire euros to most exchanges in under an hour here with zero fees, not even talking about CC purchases, sorry but I trust my bank more than tether.

[rdluffy]

I think it's very important to always have some USD (it can be USDT or USDC)

I can wire euros to most exchanges in under an hour here with zero fees, not even talking about CC purchases, sorry but I trust my bank more than tether.

To be honest I trust more in Tether than banks of my country 

The correct and ideal thing is not to trust either of them
The best solution is always BTC with your custodian

tether and banks can block your funds, but in my country it's easier for a bank to block you than tether
There's a lot of talk about Tether and a possible block because it follows the law, but in practice, how many people have been affected by Tether?

[dkbit98]

We can mitigate the risks by being attentive to market news, especially with Tether and its USDT
USDC is also a good option for holding your cryptos in dollars, USDC is backed by Circle

This is not mitigating the risks at all.
All the news you are reading are delayed reaction from the market, so you won't even have the time to react when USDT or some other stablecoin goes to zero.
It's not like this didn't happen already with several different coins, tokens and even smaller stablecoins.
I am not saying that fiat currencies are rock stable also, same could happen with them, and probably will happen to push people into CBDC.

[rdluffy]

We can mitigate the risks by being attentive to market news, especially with Tether and its USDT
USDC is also a good option for holding your cryptos in dollars, USDC is backed by Circle

This is not mitigating the risks at all.
All the news you are reading are delayed reaction from the market, so you won't even have the time to react when USDT or some other stablecoin goes to zero.
It's not like this didn't happen already with several different coins, tokens and even smaller stablecoins.
I am not saying that fiat currencies are rock stable also, same could happen with them, and probably will happen to push people into CBDC.

What would be a way to mitigate the risks in your opinion or experience?

If we use the exchanges' fiat currency, for example, our money stays on the exchange, with the risk of it also being hacked or confiscated.
What's more, fiat on exchanges can generate excessive tax events depending on the country, this is a bad thing