Stablecoin

A stablecoin is a type of cryptocurrency that aims to maintain a stable value relative to a specified asset, a pool or basket of assets. The specified asset might refer to fiat currency, commodity, or other cryptocurrencies.[1][2] Despite the name, stablecoins are not necessarily stable. Stablecoins rely on stabilization tools such as reserve assets or algorithms that match supply and demand to try to maintain a stable value.[3]

Historically, multiple stablecoins have failed to maintain their value relative to the underlying assets. With the growing market transactions, stablecoins issuance and usage are increasingly regulated by governments around the world.

  1. ^ "What are stablecoins and how do they work?". Bank of England. 6 November 2023. Retrieved 1 August 2025.
  2. ^ "Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements - Executive Summary". Bank for International Settlements - Financial Stability Institute. 29 February 2024 – via FSI Connect.
  3. ^ Cite error: The named reference :1 was invoked but never defined (see the help page).
This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.