Ethereum co-founder Vitalik Buterin warns decentralized stablecoins still have deep flaws

Source: CryptoNewsNet Original Title: Ethereum co-founder Vitalik Buterin warns decentralized stablecoins still have deep flaws Original Link: https://cryptonews.net/news/analytics/32258638/ Ethereum co-founder Vitalik Buterin says the crypto industry has not yet solved some of the most basic design problems behind truly decentralized stablecoins, arguing that many existing systems rely on fragile assumptions that could break down over time.

In a post published on Sunday, Buterin laid out what he described as three core challenges that remain unresolved. Rather than promoting a specific project or proposing a new stablecoin, he framed the post as a critique of how decentralized stablecoins are currently designed and why those designs may not hold up over the long term.

At the most basic level, stablecoins are cryptocurrencies designed to maintain a stable value, typically by pegging to the U.S. dollar. While some stablecoins are issued by centralized companies that hold dollars or dollar-equivalent assets, decentralized stablecoins aim to maintain stability through code, collateral and market incentives, rather than relying on a single issuer.