Ethereum co-founder Vitalik Buterin identified three major problems hindering decentralized stablecoins: the reliance on the U.S. dollar as an index, the vulnerability of decentralized oracles to manipulation by large capital holders, and the competitive pressure from staking yields. These challenges pose structural obstacles for stablecoins aiming to achieve true decentralization. The insights were shared in an article by The Block, emphasizing the complexity of stablecoin development.

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