Only for very large amounts, at least in Europe, the central bank insures your money from its own reserves in case of bank failure up to a certain amount, AFAIK typically in the hundreds of thousands of €/local equivalent.
As an example, in the UK personal deposits of a failed bank are guaranteed by the Bank of England up to £75,000.
The Bank of England can always cover the amount, since they can simply print money as needed.
> Another motivation would be if you are concerned about having your assets frozen.
I'm with you on that one.