A stablecoin is a digital currency with its value pegged to an asset, such as gold or the US dollar. The stability of the peg ensures that the coin’s value doesn’t fluctuate wildly like other cryptocurrencies, making it a more attractive option for payments and store of value.
Unlike traditional fiat currencies, which are subject to inflationary pressures, stablecoins are designed to maintain their purchasing power over time. This characteristic makes them an appealing choice for investors seeking a hedge against inflation.
In addition, because they are digital, stablecoins can be quickly and easily transferred between parties without the need for a central authority. As a result, they have the potential to revolutionize the way we send and receive money.
