Thursday, 27 April 2023

What is a Stablecoin?

 


Stablecoins are a sort of cryptocurrency in which the digital asset’s value is expected to be tied to another asset, such as fiat money, exchange-traded commodities, or another cryptocurrency. In principle, 1:1 backing by a reference asset might cause a stablecoin’s value to mirror the value of the peg, but issuers have not been proven to keep significant reserves to sustain a stable value in practice.

Stablecoins have a variety of uses, such as payments, and are more likely to keep their value than volatile cryptocurrencies.

Some examples of well-known Stablecoin projects include USD Coin and BUSD which was started by Binance.

Read the full content on our tech glossary: https://agrtech.com.au/glossary/stablecoins/

Other related content from our blog:

https://agrtech.com.au/crypto-blockchain/best-crypto-exchanges-in-australia/

https://agrtech.com.au/crypto-blockchain/best-crypto-exchanges-in-new-zealand/

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