Stablecoin is a digital currency/crypto-currency related with a 'stable' reserve asset such as US dollar or gold. It is designed to reduce volatility relative to unexpected crypto-currencies such as Bit-coin. It is noteworthy that in the year 2014, the first stablecoin 'Tether' was created.
Usually it is specifically linked to a currency backed by the government. Currently dozens of stablecoins that use the dollar as their benchmark asset. Many of these stablecoins are also linked to other fiat currencies such as the euro and the yen.
Stablecoins offer a relatively stable option for traditional investors compared to volatile crypto-currencies such as Bit-coin. They act as a bridge between fiat and digital currencies.
Like crypto-currencies, they also have the features of block chain security, confidential transactions, quick transfers and no middlemen. They can also be used for goods, rent or electricity bills payment or other things.
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