beginnereconomics

Stablecoin

Definition

Stablecoins combine some benefits of blockchain technology with price stability. Unlike Bitcoin, which fluctuates in value, stablecoins aim to track a fixed asset—usually a national currency like the dollar. This makes them useful for everyday transactions but removes the independent monetary properties that define Bitcoin.

Example

USDT (Tether) is a stablecoin that maintains a 1:1 value with the US dollar.