The unpredictability of cryptocurrency values makes it challenging to anticipate and depend on their worth over the medium or long term. Due to this lack of reliability, cryptocurrencies become less ideal for financial transactions necessitating a stable value over an extended duration, such as real estate transactions. Stablecoins were introduced to address this issue and contribute to the cryptocurrency market. Stablecoins are aimed to offer stability, enduring purchasing power, and the predictability characteristic of fiat currencies (for example, dollar, euro, and pound) while retaining the utility advantages associated with cryptocurrencies.
This week's educational guide outlines how stablecoins work, why they are important, and what can be expected in the future, given the current regulatory and financial climate in the crypto space.