Ethereum co-founder Vitalik Buterin said current decentralised stablecoins are too dependent on the US dollar and vulnerable to long-term risks.
Buterin warned that reliance on a single fiat reference, manipulable oracles and staking yields weakens stablecoin resilience.
He said inflation, monetary policy and political control inevitably affect dollar-pegged crypto assets over time.
Tracking USD is fine short-term, but part of the vision of nation state resilience should be independence even from that price ticker.
Vitalik Buterin said.
The stablecoin market has grown rapidly, reaching more than $300bn in market value by the end of 2025.
Banks, fintech firms and major crypto projects have increasingly adopted stablecoins to link traditional finance with blockchains.
Critics said growing institutional control risks undermining crypto’s original goals of decentralisation and censorship resistance.
Georgii Verbitskii said dependence on a single fiat currency is a structural weakness for long-term stablecoin resilience.
Over a long enough timeline, inflation, monetary policy, and political control inevitably bleed into the system.
Georgii Verbitskii said.
Buterin also warned that oracle systems can be captured by large pools of capital without better technical design.
This is a big part of why I constantly rail against financialised governance.
Vitalik Buterin said.
Industry figures said stablecoin development has prioritised partnerships and adoption over security and infrastructure fundamentals.
At the time of reporting, Ethereum price was $3,100.30.