Can Stablecoins Get Past Their Instability?

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