Stablecoins are digital or crypto assets that have a value that is stable compared to a conventional monetary asset. Stablecoins are backed by assets with low risk, such as gold or fiat currencies. This reduces the volatility of their price. The backing asset could be a single fiat currency or a grouping of currencies.
Stablecoins aim to counterbalance the volatility of digital assets, by creating a more stable environment that encourages the adoption of digital currency. Stablecoins combine the stability and safety of traditional currencies with the decentralization and security of cryptocurrency to create the perfect combination.
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