There have been some efforts to create stable coins pegged to a fiat currency, which would solve a lot of problems, except for the problem that you are pegged to a fiat currency. And of course, the peg can break.
The peg can't break as long as the stablecoin is 100% backed.
Fiat-backed stablecoins are not the only ones, there are stablecoins pegged to commodities too
It raises the question though, if the stablecoin is 100% backed, what do you need the stablecoin for? It raises another question, who makes sure the backing is really there and available? And is it even really backed? For example, Tether states “no guarantee any right of redemption or exchange of Tethers by us for money.”
"If the stablecoin is 100% backed, what do you need the stablecoin for?"
If the major point of cryptos is that of representing an alternative to fiat money, then fiat-backed cryptos have indeed no major point.
Nonetheless Stablecoins offer some benefits vs. traditional money transactions.
They are the same benefits offered by all cryptos in general, due to the technology they are based on (blockchain).
As for a layman like me, the benefits I can reach an understanding of are these:
1. Transactions
In traditional business dealings, brokers, agents, and legal representatives can add significant complication and expense to what should otherwise be a straightforward transaction. There’s paperwork, brokerage fees, commissions, and any number of other special conditions which may apply.
One of the advantages of cryptocurrency transactions is that they are one-to-one affairs, taking place on a peer-to-peer networking structure that makes “cutting out the middle man” a standard practice. This leads to greater clarity in establishing audit trails, less confusion over who should pay what to whom, and greater accountability, in that the two parties involved in a transaction each know who they are.
2. More Confidential Transactions
Under cash/credit systems, your entire transaction history may become a reference document for the bank or credit agency involved, each time you make a transaction. At the simplest level, this might involve a check on your account balances, to ensure that sufficient funds are available. For more complex or business-critical transactions, a more thorough examination of your financial history might be required.
Another one of the great advantages of cryptocurrency is that each transaction you make is a unique exchange between two parties, the terms of which may be negotiated and agreed in each case. What’s more, the exchange of information is done on a “push” basis, whereby you can transmit exactly what you wish to send to the recipient – and nothing besides that.
This guards the privacy of your financial history and protects you from the threat of account or identity theft which is greater under the traditional system, where your information may be exposed at any point in the transaction chain.
3. Greater Access to Credit
Digital data transfer and the internet are the media facilitating the exchange in cryptocurrencies. So these services are potentially available to anyone who has a viable data connection, some knowledge of the cryptocurrency networks on offer, and ready access to their relevant websites and portals.
It’s estimated that there are currently 2.2 billion individuals across the world who have access to the Internet or mobile phones, but don’t currently have access to traditional systems of banking or exchange. The cryptocurrency ecosystem holds the potential to make asset transfer and transaction processing available to this vast market of willing consumers – once the required infrastructure (digital and regulatory) is put in place.
4. Individual Ownership
In a traditional banking or credit card system, you effectively turn stewardship of your funds over to a third party that can exercise the power of life or death over your assets. Accounts may be closed without notice for infringements of a financial institution’s Terms of Service – requiring you as the account holder to jump through hoops in order to get yourself back into the system.
Perhaps the greatest of all advantages of cryptocurrency is that unless you’ve delegated management of your wallet over to a third party service, you are the sole owner of the corresponding private and public encryption keys that make up your cryptocurrency network identity or address.
5. Strong Security
Once a cryptocurrency transfer has been authorized, it can’t be reversed as in the case of the “charge-back” transactions allowed by credit card companies. This is a hedge against fraud which requires a specific agreement to be made between a buyer and seller regarding refunds in the event of a mistake or returns policy.
Finally, the strong encryption techniques employed throughout the distributed ledger (blockchain) and cryptocurrency transaction processes are a safeguard against fraud and account tampering, and guarantors of consumer privacy.
https://blog.finjan.com/advantages-of-cryptocurrency/