Cryptocurrency pegged to fiat is quite possibly the dumbest possible use of a cryptocurrency I can think of, except for Tether which was an obvious scam from the get go.
- Are you a merchant selling digital goods online and you want a zero-risk chance of dealing with chargebacks? You can accept stabletokens. No credit card fees as well.
- Are you hodling a good amount of BTC/ETH/BAT tokens but you would like to get some liquidity, perhaps for a large purchase? Put your crypto as collateralized loan on MakerDAO, get DAI with very low interest and spend that: bonus point, if the crypto you were holding loses value and your loan gets liquidated, you get a tax write-off.
- Do you live in some third-world country with poor countries and strong capital controls (e.g, Argentina)? It is a lot easier to buy crypto-pegged to the USD and EUR than it is to buy actual dollars and euros.
A lot of stablecoins sacrifice decentralization, but there are some like DAI that get you all of the (non-volatility-related) benefits of cryptocurrency like direct control without the price volatility. If you want to use cryptocurrency as money, the price volatility is often a big downside.
