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That literally is the worst case scenario, supporting fiat to exist.

It's literally other way around.

Borrowing dollars under bitcoin collateral means shorting dollar and implements a speculative attack on dollar. It's literally how you suffocate and kill fiat faster.

Of course this assumes that borrowing protocol is trustless and self-custody without rug-pull risk.

exactly. the whole purpose of the software is to be self-custody without rug-pull risk

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