What are some examples of pegged currencies in the world of digital currencies?

3 answers

• Solomon SummersSep 18, 2023 · 2 years ago
  Sure! One example of a pegged currency in the world of digital currencies is Tether (USDT). Tether is a stablecoin that is pegged to the US dollar, meaning that its value is always supposed to be equivalent to one US dollar. This pegging is achieved by backing each Tether token with an equivalent amount of US dollars held in reserve. Tether is widely used in the cryptocurrency market as a way to hedge against volatility and provide stability for traders.
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• Diksha RAJPUTAug 11, 2021 · 4 years ago
  Absolutely! Another example of a pegged currency is Dai (DAI). Dai is an Ethereum-based stablecoin that is pegged to the US dollar. It is maintained through a system of smart contracts and collateralized by other cryptocurrencies. The value of Dai is designed to remain stable at one US dollar, and it is used by many decentralized finance (DeFi) applications as a stable medium of exchange and store of value.
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• berihu tesfayOct 05, 2023 · 2 years ago
  BYDFi, a digital currency exchange, also offers pegged currencies. One of the pegged currencies available on BYDFi is BUSD (Binance USD). BUSD is a stablecoin that is pegged to the US dollar and is backed by reserves held in US banks. It is designed to provide stability and liquidity for traders on the BYDFi platform. With BUSD, users can easily trade and store their digital assets without worrying about price fluctuations.
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