Stablecoin Law are government regulations that defines:
-Who can issue stablecoins
-Who kind of backing/reserve they must hold
-Audit, disclosure, and transparency requirements
-Licensing and registration
-How consumer protections are enforced
Stablecoin laws aim to make stablecoin safer, more transparent and usable for real-world payments. But they also bring compliance obligations.
There are three types of stablecoin:
1) Fiat-linked stablecoin
2) Asset-backed stablecoin
3) Algorithmic stablecoin
Fiat-linked stablecoin are digital assets that are backed by fiat currency.
Asset-backed stablecoin are digital assets that are backed by crypto-native assets like bitcoin, ether, and other real-world assets.
Algorithmic stablecoin are digital assets that are backed via some system of issuance and burning in order to adjust the circulating supply of the token!!!
