Seals

Recently, the terms 'RWA' and 'stablecoin' have been very popular in the media, with relevant regulations and guidelines introduced in the United States, Hong Kong, Singapore, Europe, and other places. The attitude of these governments towards blockchain has gradually shifted from previous resistance and suppression to acceptance and support. I feel it is necessary to clarify this hot topic and attempt to explain it simply and clearly using the Feynman technique.
Stablecoins, as the name suggests, are cryptocurrencies issued on the blockchain, with their value pegged to a specific fiat currency. For example, 1 stablecoin can be exchanged for 1 unit of fiat currency, and 1 unit of fiat currency can also be exchanged for 1 stablecoin. If this stablecoin is pegged to the US dollar, it is called a US Dollar stablecoin. If it is pegged to the Hong Kong dollar, it is called a Hong Kong Dollar stablecoin. In simple terms, a stablecoin is a token on the blockchain that is price-anchored to fiat currency.