I am not sure if that’s even possible, it doesn’t make much sense. How do you link the currency to those reserves in a way that is any different to the current currency?
That being said, a crypto which is relatively stable could be very useful for countries with runaway inflation or other issues with the state. Both for local use and liquidity across global markets.
Look at US treasury bonds: the US can adjust the interest rate on them, but it's the market (dealers holding auctions, etc.) that actually sets the price of them. If everything else is a bad investment (like during the 2007 recession), people will actually buy the likely-negative-yield treasury bonds at a premium, because they need to stick the money somewhere and everything else looks to have a worse NPV. As such, the market value of any security can exceed the value of its call option.
Sounds like a blast from the past.
If the Venezuelan government will sell anyone one oilcoin for a barrel of oil, nobody would buy one for more. If the Venezuelan government will buy an oilcoin for one barrel of oil from anyone, nobody would sell one for less.
They almost certainly won't be freely exchangeable to this degree, but there is no problem with price controls in theory.
And the government can seize money at any time, Tether style, by invalidating public coin addresses it seems dirty.
It seems like there's a fairly tight correlation between the value of a cryptocurrency and the effort required to mine it. (Which is what you'd expect -- if the price of BTC rises, more people mine it, and the per-block difficulty increases, and if the price falls, fewer people mine it, and the difficulty falls.)
I wonder if we could create a more stable cryptocurrency by keeping the mining difficulty constant (or possibly tied to moore's law). It may be wildly "inflationary" in terms of the size of the monetary base, but it should be fairly stable in terms of real resources per unit of currency.
PoS coin supplies should be avoided, as the production cost or input work is not worth the speculative asset produced.
XRP is a case study in how they've created artificial scarcity and can flood the market with sell orders from their reserves.
https://www.coindesk.com/ripple-jed-mccaleb-settle-suit-over...
I'm interested by your idea, but you would need to work by a different consensus model. Proof-of-stake would be interesting to investigate, since mining doesn't scale with computation power, rather holding of the currency.
Has mining cost matched? Or is mining cost a ceiling for trading price