Stable coins

  • The United States Congress recently made an attempt to create a legislative framework for the increasingly popular stablecoins.

About Stablecoins

  • They are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument.
    • The first stablecoin, created in 2014, was Tether.
  • Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC).
  • Unlike cryptocurrencies like Bitcoin, stablecoins’ prices remain steady, in accordance with whichever fiat currency backs them. Eg: USDC stablecoin is backed by dollar-denominated assets.
  • Advantages :
    • They are open, global, and accessible to anyone on the internet.
    • They’re fast, cheap and secure to transmit.

About Cryptocurrency

  • Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and verify the transfer of funds.
  • These currencies operate independently of a central bank.
  • The economic transactions underlying cryptocurrency are decentralized, distributed and disbursed.
  • The first and most famous cryptocurrency, bitcoin was introduced in 2009.
  • Most cryptocurrencies are built on blockchain technology.


Print Friendly, PDF & Email

© 2023 Civilstap Himachal Design & Development