Ethereum co-founder Vitalik Buterin has identified three major challenges facing the development of truly decentralized and resilient stablecoins. He emphasized the need for stablecoins to move beyond being solely pegged to the US dollar, advocating for benchmarks that reflect real purchasing power. Buterin also stressed the importance of highly decentralized oracles that are resistant to financial capture, warning that reliance on high-value extraction for security could harm user interests. Additionally, Buterin pointed out the structural conflict between staking rewards and stablecoin collateral in Proof of Stake (PoS) systems. He noted that the market underestimates the risks of censorship attacks and liveness penalties. Buterin argued that stablecoin systems must have the ability to dynamically rebalance during extreme market conditions, rather than relying on a fixed amount of ETH collateral.