how are you All?
Hope everyone is very well, today we will know a very important thing,
Today we will learn about Fiat-collateralized Stable Coin,
What is Fiat-collateralized Stable Coin? And how does it work?
Stable Coin is basically 4 types, we will know which category Stable Coin is safe for us!
So first let's know how many types of Stable Coin and what is it?
| 1.Fiat-collateralized stablecoin |
|---|
| 2. Commodity-Backed Stablecoins |
|---|
| 3.Crypto-Backed Stablecoin |
|---|
Image collect Pixabay
In today's episode we will know how Fiat-collateralized Stable Coin works, and how safe it is for us.
We all know that stable coins always have the same price, neither more nor less than $1, these coins are always stable.
Fiat-collateralized stable coins are as backup, United States Dollars, Euro, GBP, these currencies are kept in the bank in 1:1 ratio, like against 1 coin, they are equivalent to $1 USDT, Euro, GBP in the bank. ,
Let us know some popular coins of Fiat-collateralized stable coin category, such as USDT, USDC, TUSD, GUSD, USDP,
Image collect Pixabay
A good aspect of Fiat-collateralized Stable Coin is that this coin has various popular currencies as backup, there is no fear in these coins, because the unique stable coin category contains Crypto, there is no fear of market crash, if Fiat-collateralized Stable Coin is a problem in the future. After that, the backup currencies deposited in their banks will be given to the victims.
So Fiat-collateralized stable coins are safe for us.
Ending here today, everyone stay well, stay healthy, Allah-Hafez
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https://twitter.com/RakibInsid68546/status/1784019364477304857?t=a1RHjLdpYVzcYs6fS8CX9g&s=19
I had no idea about this before but I've been using usdt all the time and it's my favorite of the stablecoins. Very nice to read the article.Look forward to another detailed post from you on this topic.
The importance of stable coin in crypto market is growing significantly and it is anticipated that by 2028 it will be grown by multi fold. Thanks for sharing the details about collateralization on stable coins through Fiat.
Great to hear more from you about fiat-collateralized stablecoins. In fact, when I learn something new, then the interest in work increases. Thanks for such a nice topic to discuss.