#StablecoinLaw
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as the US dollar, euro, or gold. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins aim to offer the benefits of digital assets—like fast transactions and low fees—without extreme price swings. They are commonly used for trading, remittances, and as a store of value in the crypto ecosystem. Popular examples include USDT (Tether), USDC, and DAI. Stablecoins can be backed by fiat, crypto, or algorithms, depending on the design. Their reliability depends on transparency and collateral reserves.