TechFlow news, October 31 — According to Cointelegraph, in an interview on October 31, Michael Egorov, founder of Curve Finance, stated that the primary risk facing centralized stablecoins isn't investor concerns over reserves, but rather geopolitical risks stemming from government regulation. He pointed out that underlying assets backing over-collateralized stablecoins—such as cash deposits in financial institutions and U.S. Treasury bonds—could be subject to asset freezes or confiscation.
Egorov believes algorithmic stablecoins offer a solution to these potential sanctions, as their fully decentralized nature relies solely on self-executing software operating on-chain. At the same time, he emphasized that compared to fiat-backed stablecoins, algorithmic stablecoins provide investors with an "algorithmic guarantee" that their funds won't vanish due to asset seizure. Previously, Tether CEO Paolo Ardoino raised similar concerns regarding the EU's MiCA regulations, arguing that requirements for stablecoin issuers to hold bank reserves could introduce systemic risks.
