Stablecoin

Stablecoin is a digital asset that maintains a stable value and is designed to minimize the volatility that is typically associated with cryptocurrencies. Stablecoins achieve this stability by being pegged to an external asset, such as fiat currency, precious metals or other cryptocurrencies. Stablecoins have gained popularity in the cryptocurrency world, as they offer a more reliable means of exchange and a store of value. They can be used for transactions within the cryptocurrency ecosystem, to hedge against market volatility, or to provide a stable unit of account that is more suitable for everyday use. Stablecoins are particularly useful in situations where merchants and consumers need to transact in cryptocurrency, but are wary of the currency's fluctuating value. By using a stablecoin, they can be assured that the value of their transactions will remain stable, and they will not be subject to the same risks as traditional cryptocurrencies.