A type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency or other asset.
A stablecoin is a digital currency engineered to minimize price volatility. Unlike many cryptocurrencies that experience significant price swings, stablecoins aim to maintain a consistent value, often by being pegged to a stable asset such as a national currency (like the US dollar), a commodity (like gold), or a basket of assets. This stability makes them useful as a medium of exchange, a store of value within the volatile cryptocurrency ecosystem, and a tool for managing risk.