Curve Finance Founder: Overcollateralized Stablecoins Vulnerable to Geopolitical Risks from Government Regulation

Michael Egorov, founder of Curve Finance, recently said that the potential risks of overcollateralized stablecoins have recently become more prominent, according to Cointelegraph. These risks are not necessarily the reserve-related risks that investors typically cite, but rather the geopolitical risks posed by government regulation. “The underlying assets backing collateralized stablecoins, including cash deposits at financial institutions and government securities such as U.S. Treasury bills, are vulnerable to asset freezes and seizures.