In the UK swapping between crypto is a taxable event.

It means selling the asset, full stop.

> It means selling the asset, full stop

So it seems from the outside that stablecoins exist primarily to take advantage of grey areas in taxation legislation - and possibly also KYC/AML legislation - which allow investors in certain jurisdictions to avoid taxable events which would otherwise occur when trading.

Building a business model on dodging taxes isn't a great look, is it?

We also have umbrella investment funds doing the same thing but without crypto.