FORGET IOU....I'm not even talking about IOU's.
You are - but let's look at what you say "next" (pun intended).
Example: NXTMONEY is pegged at 1 USD....so everyone who has or wants to receive NXTMONEY knows that it is worth 1 USD, 1 YEN, 1 CNY for example locally in his country.
This is the problem - *how* is it *pegged*?
It can only be so if some individual or group is "guaranteeing" to accept it for 1 USD (or whatever) but if that person/group decides that they are not worth it (for whatever reason - maybe they don't have any USD left) then your *pegging* has just failed and in fact the coins are worth ZERO.
This is why they are not *actual* USDs (or whatever) - they are actually IOUs - this is EXACTLY how Ripple works.
I have been working on a solution in my mind for a couple weeks now....I will explain it once Asset Exchange testing starts and we play around for some time....right now it's only concepts in our minds....at least I had the luxury of speaking to a PhD who has been testing the Asset Exchange for some time now but there are still black spots in my thinking.