I bet the first failure of a large stablecoin will be fun (for external onlookers at least).

Only virtual fiat is useful everything is garbage.

The stable coins in question are absolut idiotic. You can't just have billions and trillions of dollars/euros/fiat in some bank and not do anything with it while everyone else is using your stable coins.

It motivates these companes to invest the fiat they have to hold, which adds risk which wasn't there before.

Just make it a real digital fiat from central banks.

But than what did you win? Instead of having your banking ssystem in place with certifications, bank licenses etc. you have nothing to replace it with just bare digital fiat.

Smart contracts don't work.

Now what? a new whole parallel ecosystem? For what?