This app was mentioned in 3 comments, with an average of 2.67 upvotes
In fact NuBits is NOT backed by fiat reserves but by the value of the issuing "bank" like corporation Nu.
NuBits (NBT) get sold by Nu for BTC and the BTC get invested in development (increasing the value of Nu), share (NuShares; NSR) buybacks and very little in marketing and other activities.
While sold NBT are only temporary revenue (the NBT in circulation are a liability for Nu), NBT get destroyed with transaction fees.
Destroyed NBT are final revenue for Nu.
Nu is still young and evolving, but the peg has been kept at almost exactly 1 USD and the biggest differences from being reported as exactly 1 USD are due to the fact that BTC/USD doesn't have the same price at all exchanges.
If a liquidity operation uses a price feed different from e.g. coinmarketcap, the price can be exactly 1 USD based on that price feed (e.g. Bittrex), while coinmarketcap reports 0.99 USD based on a different price feed (e.g. Bitstamp).
The close peg is a direct result from the compensation that is paid to liquidity providers to put orders with a close spread on order books; it's not by chance that NBT are pegged even in times with daily trading volumes in the millions of USD value (have a look at coinmarketcap: January 2015).
Other "stable" coins are either not stable or create a peg to USD directly, relying completely on fiat that most crypto currency users want to get rid of. Relying directly on USD can hardly be achieved without a centralized business model - the USD collateral needs to be kept somewhere (e.g. Tether, coinoUSD).
Nu funded developments like NuDroid allow using NBT on an Android device and keeping USD value stable NBT while being able to pay in any crypto currency supported by shapeshift - NuDroid has a built-in conversion; you can pay at any place that accepts Bitcoin payment with NBT that get converted on the fly to BTC!
Nu has some way to go until it is used for what it was designed to be used - as a stable crypto currency that saves you from the need to convert to fiat if you want to have stability.
NBT have all attributes good crypto currencies have:
Meanwhile you can use it for hedging crypto currency volatility.
NuBits is in a unique position if the attributes
are important.
And if there's need to adjust Nu, there's the incredibly powerful "motion" feature with that NSR holders (the owners of Nu) can decide what to do.
This has been used for a lot of strategic decisions and can be used for anything that requires a consensus of those who have a stake in Nu.
Nu is a corporation with business process on a blockchain - the same blockchain that processes NBT transactions.
It's not a crypto currency you can mine by heating up air!
Obviously I'm a fanboy as well - but not because of blind belief; the implementation and the success story convinced me!
This might appear unrelated to your question, but I understand that you want to mine coins, because you want to evade the high inflation in Venezuela.
If that is true, I recommend to spend some time researching stable (and pegged to the USD!) crypto coins like bitUSD, NuBits or Tether as a way to evade the inflation.
I'm not sure the list is complete, but these are the stable crypto coins I'm currently aware of.
If you are more interested in mining because of the speculative value of the mined coins, a stable (in relation to USD) crypto coin might be the totally wrong way to go ;)
If you are more interested in evading inflation, I urge you to have a look at those mentioned above!
For NuBits there's a NuDroid called app for Android available that allows you to keep NuBits on your phone and convert them via shapeshift to BTC, LTC, etc. when you need them in BTC, LTC, etc. to pay for stuff.
But you can as easily just transfer them from one mobile phone with NuDroid to another mobile phone with NuDroid.
In fact you could create a stable shadow currency with bitUSD, NuBits or Tether ;)
[edit] Darn spelling... "invade" invaded my keyboard when I was trying to write "evade" - but only at one occurrence. It's corrected now...
I try to answer your questions withou quoting them. If that impacts the readbility, I'll adjust that.
One goal is as simple as is one each company's goal: earn money.
Another goal is to offer a stable crypto currency for unbanked people, being a means to store stable money that can't be confiscated by governments easily, etc.
A custodian is a trusted person that provides a service for Nu.
Custodians may receive NBT or NSR and have a clear mission what to do with them (one mission could be what you described).
The NBT and NSR are not made out of thin air - the business "Nu" backs them. This is in fact not so different from Bitshares approach, but more flexible and agile.
Nu is indeed acting like central banks (e.g. the Fed), but in difference to them Nu is a decentralized autonomous corporation, whose purpose is offering a stable currency: 1 NBT is pegged to 1 USD.
Nu is not being owned by a governement and not being bound to governmental interests.
Without the NuBots the pegging isn't easily accomplished, because trading pairs other than NBT/USD are supported by Nu (e.g. BTC/NBT, etc.).
While you can simply place big buy and sell walls in NBT/USD trading pairs at a 1:1 ratio (plus/minus the exchange fee), this doesn't work with volatile crypto pairs.
Only supporting NBT/USD would indeed by quite simple ;)
But as NuBots are availablethey can try to earn Nu money on the NBT/crypto pairs with a well-placed spread.
The practical application of NuBits is to have a crypto currency where transactions are handled in a distributed block chain, where you can transfer coins back and forth, store them in your wallet on the PC or on an Android device - basically treat them like any other crypto currency/asset with the advantage of having a stable (USD) value!
Integrating NuBits into payment processors, exchanges and gateways has been declared a priority and in addition to that an improved version of the Android wallet is under construction which supports shapeshift allowing you to pay with the NuBits you store on your Android wallet at every place that accepts crypto payment which is supported by shapeshift (which are quite a few).
Doesn't it sound attractive to have a non-volatile crypto currency that allows you to pay at places, which e.g. accept Bitcoin?
So I wouldn't say there's no practical application.
Keeping crypto currency in a stable way is in my opinion a clear step forward.
...and it will even get better ;)