Curve Finance Founder Highlights Geopolitical Risks of Over-Collateralized Stablecoins

According to Foresight News, Cointelegraph reports that Curve Finance founder Michael Egorov recently highlighted the increasing prominence of potential risks associated with over-collateralized stablecoins. Egorov pointed out that these risks are not necessarily the reserve-related risks typically mentioned by investors but rather geopolitical risks stemming from government regulations. Egorov emphasized that the underlying assets supporting collateralized stablecoins, such as cash deposits in financial institutions and government securities like U.S. Treasury bills, are susceptible to asset freezes and seizures. This vulnerability to government actions poses a significant risk to the stability and reliability of these stablecoins.