What is stable coin? Origin in stable coin? Etc.
| What is stable coin? |
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Assalamu Alaikum how are you all I hope you are fine I am fine too Alhamdulillah Today's topic is Stable Coins.A StableCoin is a type of cryptocurrency where the value of a digital asset is linked to a reference asset, a commodity traded in exchange for fiat money (such as precious metals or industrial metals), or another cryptocurrency. The value of such a stablecoin is based on the value of a banking currency. are held by regulated financial entities. Fiat-backed stablecoins can be traded on exchanges and are redeemable from the issuer. Stability of stablecoins equates to the cost of maintaining a backing reserve and the cost of business infrastructure required by legal compliance, licenses, auditors and regulators.
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| Originating in stablecoins |
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The origin stable coin concept was first implemented in 2014.
One of the first stablecoins was Tether (USDT), which is pegged to the US dollar.
These types of coins originally originated in an attempt to reduce the volatility of cryptocurrency prices, making the use of cryptocurrencies easier and more practical.
Image collect Pixabay
| What are the types of stablecoins? |
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Stable Coin is of 4 types-
Fiat backed Stable Coin
Crypto Backed Stable Coin
Commodity-Backed Stablecoins
Algorithmic Stablecoins
Stable coins play a very important role in the cryptocurrency ecosystem, as they provide stability against cryptocurrency volatility.
Their variety and functionality have made stablecoins a popular choice for cryptocurrency users.
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