What are the real risks of stablecoins?

We often talk about price volatility, asset reserves, and the credit risk of issuing institutions, but these are all surface-level issues. The truly critical problem is often overlooked—**the neutrality of the settlement network**.

Imagine: your stablecoin is only used within a certain ecosystem, and no one cares who controls the underlying blockchain. But what if this stablecoin needs to operate across multiple platforms, regions, or even enter traditional financial systems? Then it becomes a critical infrastructure. At this point, the settlement network is no longer just a technical detail but a matter of life and death for whether funds can flow securely.

If the settlement network overly depends on a specific economic incentive system or a particular judicial environment, the system is laying a landmine. High-frequency traders may not care how the underlying code is written, but what they fear most is—when will my funds get stuck due to a centralized decision? This is not alarmism but a core issue that the settlement layer must address.

**Plasma's approach is different.** It doesn't rely on complex financial engineering to patch this vulnerability but fundamentally transforms the system. By anchoring to Bitcoin's security, it allows the settlement layer to break free from dependence on a single ecosystem or incentive model. Bitcoin's role here is clear—it is an independent, neutral reference point, unaffected by application-layer disputes or governance turmoil.

In contrast, other public blockchains often tie security and native token incentives together. This might be acceptable in general scenarios, but when used as a settlement infrastructure, problems arise. Both neutrality and long-term stability become questionable.

Neutrality must be considered from the very beginning of system design. Waiting until the settlement network is operational to make changes is too costly. Plasma has always taken this seriously from the start, and the underlying logic is quite clear—**to prepare for the future of stablecoins**. As application scenarios become more complex, the requirements for the settlement layer will only increase.

While Plasma can't solve all problems, building a solid and sufficiently neutral settlement foundation itself is a form of competitiveness. This approach reflects a long-term perspective, thinking about how the system can survive longer in complex environments.