How is USDC a scam? Or how about DAI? Also, when I say stablecoins, I am also referring to CBDC's. Anyways, not everyone has a bank account (your viewpoint is very Western centric) and having to withdraw cash in a foreign country is just poor UX in the digital age.

And what about refugees fleeing war, like Ukrainians in 2022. There were many many cases where Ukrainians had zero access to their banks while in Poland. Having 12 words, or a set of 5 trusted guardians would be a much better way of securing your wealth than trusting some third party custodian in a city under siege.