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International Business Times
International Business Times
Business
David Thompson

Explaining Stablecoins Simply: How They Work

In simple terms, a stablecoin is a digital currency designed to maintain a stable value and avoid the sharp price swings typical of traditional cryptocurrencies. Unlike Bitcoin or Ethereum, whose prices can fluctuate dramatically, stablecoins aim to keep a constant value, most often pegged to the US dollar. That is why low-volatility stablecoins have become a foundational tool for payments, transfers, and storing value in the crypto economy.

Imagine sending a digital asset anywhere in the world in seconds, with the familiarity of a dollar, but operating natively over the internet. That is the core promise of stablecoins.

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