SVB showed us that if there is a bank run on stablecoins, the bank would fail, the stable would lost his peg and the banking system would crash
Let's imagine USDT is backed 1:1 with US bonds, cash and other liquid and semi-liquid assets.
If for some reason a bank run on stablecoins happens, everybody swapping to dollars, it would force Tether to sell their bonds in mass, resulting in huges spread and loss in value. The exact way SVB went bankrupt. bonds can be held to maturity and you'll have 1:1 value, but if you need to sell fast you'll be screwed. And the rest of the banking system would fail also.
TLDR: I just realized that the whole banking system is connected to crypto through stablecoins being backed by bonds. It's not SVB alone.
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States Are Rejecting Seemingly Pro-Bitcoin Legislation
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CNBC - Bitcoin is poised to blow up Africa's $86 billion banking system
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