Can Stablecoins Get Past Their Instability?

Stablecoins, cryptocurrencies constructed to hold a stable value through a peg to an underlying asset, such as the U.S. dollar, have gained popularity for their unrealized to provide the flexibility of cryptocurrency without its price volatility. Their design — whether fiat-backed, as most are, or algorithmic (i.e. aided by other assets or cryptocurrencies) — is meant to offer users a refuge from the price gyrations of traditional cryptocurrencies disposed to bitcoin (BTC) and ether (ETH).