Do you think that stablecoins are better beside Bitcoin?

[dansus021]

Well, back then, there is actually a stablecoin that lived on Bitcoin from Tether, and they hosted it on Omnichain, another layer 2 of Bitcoin. But tether decide to sunsetting omnichain because there is not many user use the chain but is not in bitcoin but also other chain aswell and now they are focusing on chain that has lot of user base to easier to maintain.

Bitcoin and stablecoin is in my opinion just like water and milk and they could potentially work together especially in Lightning Network. But in the main network Stablecoin or other form of token can live because the nature of the chain itself. Slow and expensive

[BlackBoss_]

Well, back then, there is actually a stablecoin that lived on Bitcoin from Tether, and they hosted it on Omnichain, another layer 2 of Bitcoin. But tether decide to sunsetting omnichain because there is not many user use the chain but is not in bitcoin but also other chain aswell and now they are focusing on chain that has lot of user base to easier to maintain.

There were reasons for this decision from Tether. They did that decision when Bitcoin on chain transaction fees were very expensive and with appearances and availability of stablecoins on ETH, Tron, BNB chains, people lost interest in using Omni chain for stable coin transactions.

Tether to halt USDT on Omni.

They are even late in making that decision because in 2020, the shares already belong mainly to Ethereum and Tron.
Stable coin on chain volumes in 2020.

For stablecoin transactions, Ethereum remains the most popular blockchain, having about 83.5% share. TRON and Omni blockchains follow next, with about 14.5% and 2.1% share, respectively.

[Renampun]

Stablecoins still function as digital representations of fiat currency that can be used for transactions.. it doesn't matter whether they're on the Tron chain or other blockchain networks, their function remains the same.. the only differences are transaction speed, fees, and reliability for larger usage. so, if it's placed on the Lighting network, not sure what the point is, because ultimately it still serves as a representation of fiat currency.

[CryptoBuds]

However, basic issue does not change. Indeed, regulations actually make stablecoins MORE centralized. Now issuers require licenses, approved reserves and government watch which means your funds can be frozen, blacklisted and restricted at any time. This is not first time that USDC has frozen wallets.

Stablecoin like USDT and USDC are already centralized by nature, and they can freeze your fund at any time without needing government approval.

Basically, regulations make them safer for users rather than making them more centralized. They will no longer be able to arbitrarily freeze users' fund and may face legal consequences if they abuse their power or violate existing regulations.

It can be said that for centralized assets, regulations do not make them more centralized, but instead make them safer.