I am just thinking BUSD is backed by the dollar, and dollars are stored in banks and if/when the banking system is affected then how would that affect stable coins which are fully backed by the dollar. Even if you do have your balance proof on your hardware wallet, will you ever get that money?
Basically there is no definitive proof that BUSD is directly related to banks. BUSD is
a private USD owned by the Binance network that so far has absolutely no contract with the bank.
If you get BUSD you can not directly put it into money in the bank. but because the BUSD is fully owned
by binance then binance will buy the BUSD equivalent to the current fiat price and will put the equivalent money into your bank.
Please dont tell me the goverment will ensure your money/saftey etc...we know what happen in the USA in 1971..the great depression, bank closures and bank runs etc.
Of course, the bank has no right to guarantee the safety of your assets here.
Even when you send from your personal wallet like BUSD to the wrong wallet no one can be held responsible for it,
unless you find out who owns the wallet and ask him to return your assets if he wants.
In cryptocurrency even though it is centralized but has at least decentralized , even though BUSD is a stable coin when
you have any kind of error to lose your assets , no one is responsible for it.