Full Explanation
Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a reference asset (typically USD). The most popular stablecoins are USDC (fully reserve-backed) and USDT (also reserve-backed). Unlike Bitcoin or Ethereum which are volatile, stablecoins aim for 1:1 value with their pegged currency. They enable instant, borderless transactions with minimal fees while avoiding cryptocurrency volatility.
Frequently Asked Questions
By holding reserves (usually USD in bank accounts). Full reserve backing ensures 1:1 value.
USDC is safest (regulated, audited). USDT also widely used but less regulated.
Yes, send instantly to any country via blockchain. Recipient converts to local currency.
Network fees apply (cents to dollars depending on blockchain). Much cheaper than banks.