I take back what I wrote about the bank-issued stablecoin being nothing but a stand-in for USD. This bank-isued stablecoin CAN become its own currency independent of USD. It’s up to that bank how it would manage it.

There is still one remaining problem, however.

The problem is the other side of a classic chicken-egg problem: it’s not enough to put the bank-issued stablecoin into people’s possession. Vendors should also be capable of accepting it; because, if nobody can accept it, where would one spend it?

Vendors can use wallets (right now Ethereum wallets, if the stablecoin is just an Ethereum ERC20 token) to accept the bank-issued stablecoin. However, I doubt that any wallet can become popular among vendors. What vendors need is a much simpler POS App, but with features useful to vendors.