I think stable coin -no , but less volatile - yes
I think it is a common misconception about fiat currencies inflating because of an increased money supply.
Yes there is an effect. But there is no linear correlation as most people simply assume.
In fact the quality of the assets on the central bank balance sheet is a much better predictor of inflation than the growth of the money supply.
So as long as the central bank would accept only good assets to give out new currency, there does not need to be inflation.
but when the central bank accepts bad assets in return for currency then the central bank balance sheet becomes weaker, which means the central bank wont be able to defend their currency against speculators and THEN we get inflation relative to other currencies. This usally happens very abruptly like in 1933, 1971 and 202x ;).
A dissertation about that topic:
-> So thats why a central banks needs to have a solid balance sheet and MMT doesnt work.
Bitcoin is not sure to rise because of it’s limited amount. Bitcoin will rise if there is more demand than supply. Supply is both new minted coins and coins sold.
So a max supply does not help if holders want to sell.
I agree that a stablecoin as in pegged to fiat is not the way to go.
But reducing volatility by providing liquidity would be useful. So basically if people want to buy low and sell high high, this will make the coin more stable.
Unfortunately crypto traders oftentimes behave in the opposite way. Buy only after it went up and sell after it went down.
So incentivising market makers to stableize the coin might be a way to go. That is what the TON reserve was planning to do. It was a good plan!
1 TON CRISTAL = 1Kg Sugar