The United States Congress recently made an attempt to create a legislative framework for the increasingly popular stablecoins.
- Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument.
- 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.
- Stablecoin are open, global, and accessible to anyone on the internet.
- They’re fast, cheap and secure to transmit.
- 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.