Oh the number of cryptocurrencies which have tried to stabilize their currency. There was BitsharesX which was abandoned quickly. Then there is USDT. The answer is there can never be a "trusted monopoly producers" in a decentralised world.
Stablecoins are a very interesting concept. They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer. [2]
1 - https://coinmarketcap.com/currencies/bitusd/ 2 - https://blog.ethereum.org/2014/11/11/search-stable-cryptocur...
and I am saying this as someone who invested in Bitshares and it's precursor Protoshares. I still hold ~100k of BTSX.
> They are a game-theoretically incentive compatible way to stabilize a currency WITHOUT a trusted monopoly producer.
This is the biggest fallacy in cryptocurrency scene. People think everything can be mathematically modeled. Absolutely not. Everyone will act rationally in a given situation. Absolutely not.
If that were the case we would solved all the problems in the world using some kind of game theory function.
Edit: Oops looks like I deleted the SNB example. Here's what happened:
https://www.reuters.com/article/us-swiss-snb/swiss-draw-line...
SNB drew and held a line at 1.20 for EUR/CHF pair. No cryptocurrency can repeat that feat.
...but I'm not a trading or financial expert.