#BigTechStablecoin

Stablecoin, or stable coin (from English stable — stable, coin — coin) is a general term for cryptocurrencies whose exchange rate is attempted to be stabilized, for example, by forcibly tying their price to traditional currencies or the quotes of exchange-traded commodities (gold, grain, oil).

Cryptocurrency rates are characterized by extremely high volatility. For example, Bitcoin shows instability at a level higher than gold, index funds on exchanges, and most other financial assets. This sharply limits the applicability of cryptocurrencies beyond a narrow circle of users. One of the ways to stabilize the rate is to tie the cryptocurrency to a real currency by creating a centralized reserve for guaranteed exchange at the rate. As a main example in 2016, Koning[1] and in 2018 Hill[2] cite Tether, whose rate is tied to the US dollar at a ratio of 1:1. Rutledge in January 2021 mentions, besides Tether, Dai, NuBits[eng.], Basecoin[3]