Stablecoins are cryptocurrencies designed to maintain a stable value, usually pegged to assets like the US dollar, gold, or other fiat currencies. This stability makes them an attractive alternative for everyday transactions and protection against the typical volatility of other cryptocurrencies, such as Bitcoin. 
Main Types of Stablecoins
1. Fiat-Collateralized: These are the most common and are referenced against traditional currencies, such as the US dollar. Examples include Tether (USDT) and USD Coin (USDC), which maintain equivalent reserves in real assets to ensure their parity. 
2. Commodity-Collateralized: These stablecoins are linked to physical assets, such as gold. One example is Pax Gold (PAXG), which represents a specific amount of physical gold stored in vaults. 
3. Algorithmic: They use algorithms and smart contracts to control their supply and maintain price stability. DAI is a notable example, being managed by smart contracts on the Ethereum blockchain and collateralized by other cryptocurrencies. 
Advantages of Stablecoins
• Price Stability: They offer predictability, being useful for transactions and as a store of value. 
• Fast and Low-Cost Transactions: They facilitate international transfers with fewer intermediaries and reduced fees.
• Financial Inclusion: They allow access to financial services in regions with limited banking infrastructure.
• Security and Transparency: Many operate on public blockchains, ensuring immutable and auditable records of transactions.
Challenges and Regulation
Despite the advantages, stablecoins face regulatory challenges. In Brazil, the Cryptocurrency Law (PL 4401/21), approved in December 2022, established guidelines for the sector, with the Central Bank acting as the regulatory body. Internationally, initiatives like the MiCA regulation in the European Union aim to create a safe and standardized environment for the use of these digital currencies.   
