DAI has its own liquidity issue and considered using a stablecoin as collateral. USDC is backed by fiat, so they are going back to fiat because their clever algorithm doesn’t work as intended sometimes. If you’re going to fall back on fiat, you might as well go with a stablecoin like USD Circle, TrueUSD, or Gemini USD. I believe all tree can attest to be being backed by fiat using a third-party accounting firm. Tether USD doesn’t qualify as attestable. Stablecoins solve a lot of problems that Bitcoin, ETH, etc all have when converting to and from fiat. Merchants don’t care cryptocurrency… they just want something they can accept from customers and use it to pay their employees, buy supplies, buy inventory, and use as cashflow. My only concern with stablecoins is that it has that centralized management which means that some organizations could be stopped in their tracks. Really, a test of an anonymous digital currency is if a drug cartel could launder funds with it. If they can, then it passes the anonymous untraceable test. Not that I advocate for this, but it is an important feature to keep digital cash anonymous. So, really we need a stablecoin version of Monero.
The big downside to any cryptocurrency or fiat is privacy. Monero is doing good work in this area, but it hasn’t caught on much. Bitcoin at this point has to be paired with fiat to have any tradeable value. So, unless a country’s fiat like Venezuela is more volatile than Bitcoin, there’s no point in using Bitcoin at this moment in time. I feel stablecoins and digital fiat are the most attractive as ecommerce will readily use these currencies to buy and sell. I can’t really every see Bitcoin taking a foothold unless every fiat in the entire world becomes more volatile or useless than fiat. Its hard to say if or when this would occur, but Bitcoin or a fork of it (ETH, DASH, etc) is trustable enough to be used daily.