5 Potential Risks That Come with Stablecoin Savings Accounts

5 Potential Risks That Come with Stablecoin Savings Accounts


Cryptocurrency has taken the world by storm on several fronts. It was hyped up as the new evolution of money and smart investments. With the invention of stablecoins, cryptocurrency gains another bonus to its incredible popularity. 

Lack of Anonymity 

One of the main benefits of cryptocurrency is anonymity. This is a feature that has been pushed since its creation, and separates it from other types of currency. Anonymity is so important to crypto that some payment systems have changed their own TOS to implement crypto’s changes.

For stablecoin, anonymity is somewhat lacking when compared to other coins mentioned on journeytobillions. This is by design, as adding anonymity would fundamentally change how a stablecoin savings account operates. Anonymity for stablecoins seems to be tied to the issuers, or the blacklists that they can create. So, it is safe to say that certain issuers may have better anonymity features than their competitors. 

Feature Evolution

Stablecoin was first created in 2015 without a lot of hype. Subsequent versions became more popular, but were more of the same thing. In almost six years, the biggest innovation was a stablecoin savings account – and the usefulness of that is still up for debate. Stablecoin is a good crypto, and stablecoin savings are an incredible investment. But the jump in the feature set from the original to savings is massive. Its growth from this point on will determine its true place on the crypto coin ladder. 


Purchasing any type of stablecoin means tying your investment to a specific project owner. This isn’t out of the ordinary for crypto, but it does create many questions regarding support for a stablecoin savings account. If you have a sizable investment tied into an account, then you’ll have an expectation for top tier support. Basic support is left up to stablecoin buyers, while the actual resources for the company are prioritized into specialized support. Self-support is the only course of action for stablecoin owners that have basic issues with investing. 


A single password stands between being able to access your funds or losing them forever. This is both a pro and a con, with no gray area to help users that make a mistake. Although this is the biggest risk for a stablecoin savings account, it also acts as its best security feature. Users will have to create their own personal methods for keeping a password safe.

No FDIC Insurance

This is a location-based risk that you take when investing in a stablecoin savings account. Not having access to FDIC insurance for a stablecoin savings account leaves you in an uncomfortable position. Without the backing of the U.S. Federal Reserve, your stablecoin mistakes are amplified. This isn’t an issue with investors that know the game, but can be a huge problem for beginner investors. Depending on the flexibility of your portfolio, the lack of FDIC Insurance may be a game changer. 

High Risk, High Reward

Stablecoin savings accounts are a great alternative to traditional savings accounts. Variety is a great thing to have with investments, and stablecoin may be the answer that everyone needs. Be aware of the risks, and your money will always have a safe place to grow.


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