My understanding is the sales pitch is that it's quicker to move in and out of a stable coin then it is convert to cash. Plus you can avoid having to keep your funds locked in at an exchange. There's been enough exchanges disappearing with people's money that I guess keeping your cash on a blockchain with a stable coin looked more secure to some traders.
Bank transfers usually take some time, days in some cases. My understanding is that keeping things on chain generally makes things go smoother.
> What's the functional difference between that and a stablecoin issuer disappearing with people's money?
I'm not invested into any crypto, exactly because of scenarios like this. Too many wildcat banks. A lot of people are going to rediscover why our financial institutions have so much regulation.
