#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