Stablecoins are not even meant for holding; they're just supposed to provide value support for trading. If there ever be a need to hold any stablecoin, it should be DIA, which at least can't be frozen like Tether, and its government agency is doing with any wallet they suspect.
That should be the case, reality isn't as simple as that. Billions in stablecoin are staked in defi with 3-5% APY. That means big number of people planning to hold it long term since such low interest only works for long term.
If you're only using it for trading temporarily, even the shittiest stablecoin will do. For long term it's entirely different story, limiting only to stablecoin with proper regulation, or even better the one which issuer listed in NYSE and got routine audit is the way. DAI isn't really safe either since majority of its reserve is just USDC.
There will be some period in history where governments will make their own stablecoins, that is what all of this CBDC or whatever it's called exists and they are working on it. It's still a few years away and not easy to make right now, but that will be when we are going to see safe stablecoins.
Because there is no more "we lost your money" possibility, they can just print more if they want to and pay you, which means while it's devalued, and inflation hurts your value, you at least can feel safe about it. Until then, there is no reason why we should trust some companies, I agree with that and stablecoins are only good for moving money around and not for keeping, if you are keeping stablecoins you are making a mistake.
