Ledgers offer to store seed phrases is a big step forward in terms of convenience. It will allow many people to hold crypto without the risk of loss or theft of their recovery phrase.

To cover the unlikely event that Ledger loses the seed, there is insurance money available to cover losses up to a limit.

With crypto securely locked away, Ledger could allow users to access their funds to the equivalent amount in money. This will also increase convienience for day to day transactions and avoid triggering any complicated crypto regulation that may be introduced.

Access to money backed by crypto will also have the benefit of increasng liquidity in times when money demand is high. Not all crypto will be required to be withdrawn at any given time, therefore the amount of money issued could fluctuate to help keep prices stable.

Eventually when the ecosystem has matured the peg to crypto could be removed. This will allow money to more easily responds to the needs of the economy. If there were ever a pandemic or war, money would be readily available to fund the necessary expenses and stimulate the economy.