“price stability can only come with time when more real life uses emerge for cryptocurrency. Rather than stablecoins, perhaps that is the holy grail we should all be searching for instead.”
True statement. Actually if we had a currency that was tied into an app that offered some sort of valuable service we would only need to integrate that currency into 20 different Bancor pegs of different currencies to get a stable coin.
The main power of Bancor to create stablecoins lies in its ability to white list certain participants to participate without fees or at lower fees and to force all others to pay fees to conduct a transaction.
Also to impose more fees during higher periods of volatility and to reduce fees during lower periods of volatility.
Bancor is extremely flexible for creating currency pegs but the main requirement of creating a stable currency using Bancor is that you must have an underlying currency that is required for an app to run that people need and can’t live without.
So peer to peer insurance for example. Building a stable currency off of a reinsurance token held by thousands of policy pools would likely be a successful strategy.
just my 2 satoshis.