With increasing regulatory scrutiny on centralized stablecoins like $USDC, are people diversifying into decentralized alternatives or just holding fiat on-ramps? What are the implications for market liquidity?
I'm definitely seeing more chatter about decentralized options like DAI, but for daily use and larger sums, the liquidity and familiarity of USDC are still hard to beat for many. The question is how much the regulatory pressure will shift that comfort.
Good point on liquidity. While some might be looking at decentralized options, I think a lot of people are just waiting to see how this plays out before making a big move. For now, the convenience of on-ramps still outweighs the theoretical risks for many.