#StablecoinLaw Stablecoins are a special type of cryptocurrency that, unlike Bitcoin or Ethereum, have low volatility. Their main function is to provide stability in value amid the high fluctuations of the cryptocurrency market. They are pegged to the prices of commodities (gold, oil) or fiat currencies (dollar, euro, yuan), which allows them to maintain a relatively constant exchange rate.

Their main advantage is that they allow people to hold money in a digital equivalent of stable fiat currencies (dollar, euro), while still enjoying all the benefits of crypto: decentralization, security, and transaction speed.

Thus, stablecoins address one of the key issues of the cryptocurrency market - high volatility. They make cryptocurrencies a more reliable means of preserving and accumulating money.

Moreover, stablecoins are characterized by a different operating mechanism. Unlike decentralized cryptocurrencies like Bitcoin, many popular stablecoins (Tether, USD Coin) have a centralized management structure. This allows for more active regulation of token issuance and helps maintain exchange rate stability.