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A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly,
Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets.
An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.
Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.
As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.
On July 18, 2025, President Trump signed the GENIUS Act into law. It was supposed to be the moment crypto finally grew up. For the first time, the United States had a comprehensive federal framework for payment stablecoins. One year later, on July 18...
a few years ago everyone wanted to build the next bitcoin. then everyone wanted to build the next ethereum. then the next solana. the next ai token. the next memecoin. the next whatever happened to be trending that month. meanwhile, the companies qui...
On the first of the month a schoolteacher in Istanbul gets paid in lira. By the time rent is due three weeks later, the same salary buys visibly less than it did on payday. She has learned to move fast. The afternoon the money lands, she converts mos...
i was buying coffee the other day and paid with a stablecoin through a crypto debit card. the transaction took about two seconds. the barista had no idea. for all she knew, i used Apple Pay. and i stood there holding my coffee thinking about how stra...
Recently I’ve heard lots of talk about CBDCs, and how it will benefit the world, and provide banking to the Un-banked. Hearing this I simply go in my head, “I wonder what plot our oooo sooo wonderful smart governments are plotting now to force it on...
TRON and ECO partner up Seems the Russian Government is about to pass Crypto legislation allowing Stablecoins to be utilized for cross border payments. Now, let's say the feckless US Congress finally passes 'The Clarity Act' and Crypto regulation i...
The pilot project is expected to begin only in the second half of 2027 and will last for 12 months. Implementation of the Digital Euro is progressing on several fronts. Image: Mat/Pexels. The European Central Bank (ECB) is moving forward with...
Tomorrow is the first birthday of the GENIUS Act. Most crypto holders will not notice. That is a mistake. On July 18, 2025, the United States signed its first federal stablecoin law. The law came with a fuse attached: regulators had exactly one year...
In a coordinated move poised to reshape global capital flows, the U.S. Treasury Department and the UK’s HM Treasury have announced a historic collaboration to align regulations for tokenized finance and stablecoins. Through the Transatlantic Taskf...
The Day the Stablecoin World Split in Two July 1, 2026 was supposed to be just another regulatory deadline. Instead, it became the moment the stablecoin market fractured into two hemispheres. On one side: the European Union, now operating under MiCA'...
