#StablecoinLaw Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset like a fiat currency (USD, EUR, etc.), commodities (like gold), or a basket of assets. Their goal is to offer the benefits of crypto (fast transactions, borderless payments, decentralization) without high volatility.
🔑 Types of Stablecoins
1. Fiat-Collateralized Stablecoins
Backed 1:1 by fiat currency held in reserves (bank accounts).
Examples:
USDT (Tether)
USDC (USD Coin)
BUSD (Binance USD) (now being phased out)
PYUSD (PayPal USD)
✅ Easy to understand, stable
⚠️ Centralized and require trust in the issuer