There was some earlier discussion on this where it was observed that stakeholders via their elected witnesses can choose to switch the peg to something else (gold, silver, basket of commodities, etc.) if that did happen.
As smooth noted - the peg can be to any asset, really. It's just a matter of choosing which one and adjusting the protocols/parameters to reflect that. Some have asked for a peg to BTC or gold. But I think the most stable would be the widely-accepted currencies like USD. Even their fluctuations in price/value is far less volatile than nearly all other assets/commodities, and certainly cryptocurrencies.
That is always the issue with fixed exchange rates.
As it stands everything is too connected with BTC every time it takes a dump majority of crypto markets bleed in value.
There was some earlier discussion on this where it was observed that stakeholders via their elected witnesses can choose to switch the peg to something else (gold, silver, basket of commodities, etc.) if that did happen.
As smooth noted - the peg can be to any asset, really. It's just a matter of choosing which one and adjusting the protocols/parameters to reflect that. Some have asked for a peg to BTC or gold. But I think the most stable would be the widely-accepted currencies like USD. Even their fluctuations in price/value is far less volatile than nearly all other assets/commodities, and certainly cryptocurrencies.