once ripple would hit critical mass, it could actually be a reliable reference for a stable coin. Exchange values between various currencies could be read from the LCL. This would allow to develop a fiatcoin approximating a certain fiat currency without a single trusted information source. This could possibly be done without being directly integrated into the ripple protocol. All we need is reliable read access to the LCL. Probably not possible until ripple server goes open source...
Very interesting. Thanks red for digesting the key elements for us.