What is stablecoin?

1. Stablecoin is a digital currency that is backed by a reserve asset like gold or currencies like the US dollar.

2. This pegging to a stable asset reduces its volatility.

3. It has a combination of stability of fiat currency and flexibility of a digital currency.


4. They can be used to trade and save assets or earn interest.

5. Stablecoins are accessible to anyone online and are fast cheap and secure to transmit.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)