Are Stablecoins Really “Your Money”?

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A simplified illustration of the USDC wallets frozen by Circle. Source: ZachXBT

Q: Can stablecoins like USDC be frozen?
Yes. Unlike decentralized crypto assets, centralized stablecoins can be frozen by the issuing company.

Q: Why does this matter?
Many people assume crypto equals full control over funds. But with stablecoins, issuers can restrict access, especially in response to legal or regulatory actions.

Q: What should users understand?
Stablecoins offer convenience and stability—but they come with trade-offs. They are not fully permissionless, and that distinction is critical when managing risk.

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nothing like finding out your “digital dollars” come with a freeze button