How does stablecoin work and why is it gaining attention amidst the scrutiny of cryptocurrencies?

1 answers

• May 07, 2022 · 3 years ago
  Stablecoins have been gaining attention amidst the scrutiny of cryptocurrencies due to their unique characteristics. Unlike most cryptocurrencies, stablecoins aim to maintain a stable value by pegging their price to a specific asset or a basket of assets. This stability makes them an attractive option for users who want to avoid the price volatility associated with other cryptocurrencies. Stablecoins can be used for various purposes, such as facilitating cross-border transactions, providing a stable unit of account, or acting as a store of value. They have also caught the attention of regulators and financial institutions, as they offer a potential solution to the challenges posed by the volatility of cryptocurrencies. By providing stability and predictability, stablecoins have the potential to bridge the gap between traditional finance and the world of cryptocurrencies.
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