#BigTechStablecoin

A stablecoin is a type of cryptocurrency whose value remains relatively stable in relation to an external asset, such as a fiat currency (dollar, euro, etc.) or a commodity (gold). This contrasts with other cryptocurrencies, which tend to experience greater volatility in their prices.

How does it work?

Stablecoins are typically backed by reserves of assets that help maintain their stable value. For example, a stablecoin linked to the dollar may be backed by an equivalent amount of US dollars in a bank account or in other safe assets.