#BigTechStablecoin A stablecoin is a type of cryptocurrency designed to maintain a stable value, often pegged to a fiat currency like the U.S. dollar, a commodity like gold, or determined by an algorithm. It combines the benefits of blockchain technology—such as transparency, security, and decentralization—with the reliability of price stability. Stablecoins enable faster, cheaper, and borderless transactions, making them popular for remittances, trading, and decentralized finance (DeFi). They can be collateralized (backed by reserves) or non-collateralized (algorithmic). Despite their promise, stablecoins face challenges such as regulatory scrutiny, reserve transparency, and maintaining the peg during extreme market conditions.