Stablecoin
Definition
A stablecoin is a crypto-asset designed to hold a steady value by referencing an external asset, usually an official currency such as the euro or the US dollar, which is what makes it usable for payments rather than speculation.
A stablecoin is a crypto-asset built to hold a steady value, most commonly by referencing a single fiat currency and being backed by reserves so that each token can be redeemed for its reference value. Unlike volatile crypto-assets such as Bitcoin, whose price moves with the market, a stablecoin aims to stay at or near a fixed value. That stability is what makes it usable for payments and settlement. In the European Union, stablecoins fall under MiCA, and those used for payments are generally issued as e-money tokens.
Further reading
Read What is stablecoin infrastructure? for how this fits into Damex stablecoin infrastructure.
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