>Can anyone explain what the point of a pegged cryptocurrency is?
What was the point of arcades taking your quarters and issuing you tokens for the machines? Why not just allow the machines to take your quarters?
The idea is for the issuer to take real money from you and issue you Monopoly money which the issuer can track and control. In a worst case scenario the issuer can make up new rules (change their terms and conditions on you) or declare bankruptcy/dissolve and not honor the redemption of your stable coins at all.
What was the point of arcades taking your quarters and issuing you tokens for the machines? Why not just allow the machines to take your quarters?
The idea is for the issuer to take real money from you and issue you Monopoly money which the issuer can track and control. In a worst case scenario the issuer can make up new rules (change their terms and conditions on you) or declare bankruptcy/dissolve and not honor the redemption of your stable coins at all.