A lot of dollars in the bank is VERY unstable.... although it shouldn't be.

Maybe it is because we actually do not have a dollar bank. Where we could just pile dollars into the vault. And instead have a fractional reserve lending system where if you do not put the money into something (bond, stocks...) you are losing money.

The thing i would really like about a bitcoin backed stable coin is that i could verify the btc holdings. I know very specifically where and when they are.

I feel you could make this thing work well, offering a % to park bitcoin...
... but, i really do not want to work on making this work, because i feel that before getting it to work, bitcoin will go to the moon, and the dollar will collapse.... but hey, we might get a few years to a decade out of it.