>We really can't have centralized entities issuing stable coins, can we.

You can. It's called a 'bank' and they're heavily regulated.

Instead, what crypto has are wildcat banks. You've never heard that term because when they existed, 150 years ago, "[b]ank closures and outright scams regularly occurred, leaving people with worthless money."[1] Sound familiar?

[1] https://en.m.wikipedia.org/wiki/Wildcat_banking

That’s an absolutely fascinating Wikipedia rabbit hole. I would pay good money to read a Neal Stephenson book set among Michigan wildcat bankers and railroad venture capitalists in the 1830s…

Unfortunately DAI is also now collateralised by USDC, I read somewhere is up to 30% (haven't been able to verify) but I'm not sure what effect it'll have on DAI if USDC collapses. More here: https://www.reddit.com/r/MakerDAO/comments/nwydtj/what_is_th...

The reason the crypto world uses dollar-pegged tokens in the first place is for their relatively stable value. The downside is that obviously this stability is not perfect, and it's managed by a centralized entity, which as monstrously big and powerful it may be, is still a single point of failure with its own interests. The real ultimate solution is to detach from the US dollar and get value stability from somewhere else, e.g. RAI[1].

[1]: https://reflexer.finance/

Just hold BUSD if you're concerned, that really is safe, even in turbulent market conditions.

Not financial advice.

Why exactly would you think BUSD is safe? Buy USD. Financial advice.

Why would you think USD is safe? It's been dropping precipitously over the past 18 months as the Federal Reserve just increases the money supply exponentially. Just check the USD/CHF pair for an example.

How is this solved by buying a stablecoin? It’s pegged to 1 USD regardless of inflation.

BUSD's risk is a superset of USD's, no? It's just USD but you subtract the part where the world's most powerful military cares about it and then you add in a part where random crypto people can add their own fraud.