What are stablecoins?

USD Coin is an example of a cryptocurrency called a stablecoin. You can think of it as a crypto dollar, and USD Coin is designed to minimize volatility and maximize utility. Stablecoins offer some of the best attributes of cryptocurrencies (seamless global transactions, security, and privacy) with the valuation stability of fiat currencies.

Stablecoins work by pegging their value to an external factor, usually a fiat currency like the dollar or a commodity like gold.

As a result, their valuations are less likely to change from day to day. This stability can increase their utility as a currency for everyday use, as buyers and merchants can be confident that the value they are transacting will remain relatively consistent over an extended period of time.

Like traditional savings accounts, they can also serve as a safe and stable way to store money.

What is the future of cryptocurrencies?

Experts often talk about the ways that cryptocurrencies offer solutions to the shortcomings of our current financial system. High fees, identity theft, and extreme economic inequality are imperfect parts of our current financial system, and they are also issues that cryptocurrencies have the potential to address. The technology that powers digital currencies has broad potential beyond the financial industry, from revolutionizing supply chains to building a new decentralized internet.